MANNALAL CHHAJULAL Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act") read with Section 13 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as "the Entry Tax Act"), the Board of Revenue has referred the following question of law to this Court for its opinion :

(2.) THE material facts giving rise to this reference, briefly, are as follows : The assessee is a dealer in cotton and cotton seeds. The assessing authority imposed a penalty on the assessee under Section 7 (5) of the Entry Tax Act, on the ground that the assessee had failed to issue bills containing a statement as required by Rule 7 of the M. P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Niyam (hereinafter referred to as "the Rules" ). On appeal before the Deputy Commissioner of Sales Tax (Appeals), Indore, the appellate authority rejected the contention raised on behalf of the assessee that the assessee was not liable to pay penalty. Aggrieved by the order passed by the Deputy Commissioner of Sales Tax (Appeals), the assessee preferred a second appeal before the Board of Revenue. That appeal was dismissed. Aggrieved by the order passed by the Board of Revenue, the assessee sought reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this Court for its opinion.

(3.) LEARNED counsel for the assessee contended that the Board of Revenue erred in law in holding that the assessee was liable to pay penalty, as provided by Sub-section (5) of Section 7 of the Entry Tax Act, merely on the ground that the assesses had failed to affix seals on the duplicate of the bills. Learned counsel for the assessee contended that the facts, on the basis of which penalty could have been imposed on the assessee under Section 7 (5) of the Entry Tax Act, were not found by the assessing authority and hence, the assessee was not liable to pay any penalty in terms of Section 7 (5) of the Entry Tax Act. In reply, it was contended on behalf of the department that under Rule 7 of the Rules, the assessee was required to maintain the counterfoil or duplicate of the bills for each sale of local goods effected by him to another registered dealer, in the manner prescribed by Rule 7 and as the assessee failed to do so, the assessee became liable to pay penalty.