COMMISSIONER OF SALES TAX Vs. BASANT STORES

JUDGEMENT

(1.) BY this reference under Section 44 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act), the Board of Revenue has referred the following question of law for the opinion of this Court:

(2.) THE facts giving rise to this reference as set out in the statement of the case are these : The assessee, a dealer in cutlery, hosiery and fancy goods, was assessed to sales tax for the period 1st April, 1969, to 31st March, 1970. In the course of that assessment, a penalty of Rs. 300 was levied under Section 27 (2) of the Act for the non-issue of bills. The order passed by the Sales Tax Officer was maintained in first appeal. In second appeal by the assessee the Board of Revenue held that there were only three instances of non-issue of bills, the total of which came to Rs. 95. 65 and that under Section 27 (2) of the Act the penalty that can be imposed is double the amount of the bill or the cash memorandum in respect of which such contravention has occurred or Rs. 50 whichever is less and that the maximum penalty that could be imposed is only Rs. 50. In this view, the penalty was reduced to Rs. 50 by the Board of Revenue. At the instance of the Commissioner of Sales Tax the Board has referred the aforesaid question of law for the opinion of this Court.

(3.) IT has been found as a fact that three instances were discovered in which the assessee had not issued bills and the total of transactions in which the bills were not issued amounted to Rs. 95. 65 The Board was of the view that under Section 27 (2) of the Act the maximum penalty that can be levied is Rs. 50 and on that ground the penalty was reduced in the present case. Section 27 of the Act reads as follows :