ASAWA FLOUR MILLS Vs. STATE OF M P

JUDGEMENT

(1.) THE petitioner has by this petition prayed that the third proviso to section 3 (1) of the M. P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 as amended by Act No. 24 of 1982 may be declared to be invalid and annexures A and D may be quashed. The petitioner has also prayed that the assessment and penalty imposed under section 43 of the Sales Tax Act read with section 13 of the Entry Tax Act may be set aside.

(2.) SUFFICE it to say that so far as validity of section 3 (1) of the Act of 1976 is concern, the same has been upheld by this Court in the case of National Pure Food Suppliers v. State of Madhya Pradesh [1995] 28 VKN 247. Therefore, the challenge to the validity of third proviso to section 3 (1) of the Entry Tax Act does not survive.

(3.) SO far as challenge to the validity of the third proviso to section 3 (1) of the Entry Tax Act is concerned, it has already been upheld by this Court. The said proviso clearly lays down that in case the goods which have entered into local area have not suffered tax, then the person who has purchased the goods is under a liability to pay the tax and the penalty. By virtue of the proviso, therefore, the petitioner is under obligation to pay the entry tax and the penalty also. Learned counsel submitted that in identical situation, their Lordships of the Supreme Court in the case of Cement Marketing Co. of India Ltd. v. Assistant Commissioner of Sales Tax [1980] 45 STC 197 have taken the view that in a bona fide situation, the penalty should not be levied. We have considered the ration of that case.