MOHAN LAL CHOKHANY Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This appeal raises a short but interesting point for determination. The short point is whether a dealer liable to Central sales tax under the Central Sales Tax Act can be subjected to a penalty for non-submission of returns of turnover within time. The appellant contends that there is no such power under the Central Sales Tax Act.

(2.) The appellant made an application under Article 226 of the Constitution for writs of mandamus, certiorari and prohibition and for appropriate directions and orders to cancel or rescind the order imposing penalty dated the 18th September, 1964, and the notice of demand dated the 22nd September, 1964, and the notice dated the 4th December, 1964, for further levy of penalty.

(3.) The appellant's case is as follows: He is a dealer registered under Section 7 of the Central Sales Tax Act, 1956, carrying on business under the trade name of Messrs Chokhany Sons in jute, jute goods, gunnies, hessian and other merchandise at No. 5 Clive Row, Calcutta, holding registration certificate No. 372A LR (Central). It is his case that for the purpose of assessment under the said Act he is required to submit a yearly return and his accounting year is the Ramnavami year. In respect of the year ended on Chait Sudi 8, 2019, corresponding to 12th April, 1962, he had to submit return by 11th June, 1962, in accordance with the provisions of the Central Sales Tax (Registration and Turnover) Rules, 1957, read with Rule 8 of the Central Sales Tax (West Bengal) Rules, 1958. On the 24th March, 1964, the Commercial Tax Officer issued a notice in form 3, prescribed under Rule 9 of the Central Sales Tax (West Bengal) Rules, 1958, calling upon the appellant to appear and produce the books of accounts before him on the 7th May, 1964, for the purpose of assessment of the Central sales tax for the year ended on Chait Sudi 8, 2019, and also for showing cause why penalty under Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941, should not be imposed upon him. On the 18th September, 1964, the Commercial Tax Officer completed the assessment for the period under Section 9(3) of the Central Sales Tax Act, read with Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941, and determined the Central sales tax payable at Rs. 13,026.69 and levied also a penalty of Rs. 2,500 under Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941, for not filing the return within the prescribed time. Thereafter, the Commercial Tax Officer issued a notice of demand in form 4, prescribed under Rule 9 of the Central Sales Tax (West Bengal) Rules, 1958, dated the 22nd September, 1964, demanding the Central sales tax of Rs. 13,026.69 and a penalty of Rs. 2,500 under Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941. Thereafter, another notice dated the 16th November, 1964, was issued by the Commercial Tax Officer asking the appellant that unless the outstanding tax and penalty amounting to Rs. 7,522.65 (which amount was arrived at after deducting Rs. 8,004.04 already paid) was paid within seven days further penalty under Section 11 (4B) of the Bengal Finance (Sales Tax) Act, 1941, would be imposed.