NATIONAL MOTORS Vs. PUNJAB STATE

JUDGEMENT

(1.) THIS order will dispose of General Sales Tax Cases Nos. 8 and 12 of 1966, which are by the same assessee; only they relate to different years. General Sales Tax Case No. 8 of 1966 relates to 1961-62 while General Sales Tax Case No. 12 of 1966 relates to 1960-61.

(2.) FOR the year 1960-61, the petitioner-firm had not filed the quarterly returns of its turnover as required under Section 10 of the Punjab General Sales Tax Act (hereinafter called the Act) and the Rules framed thereunder, with the result that the firm also did not pay the sales tax due on the basis of those returns. A notice was issued to the petitioner-firm by the Assessing Authority which was received by it on 27th September, 1961, requiring the petitioner-firm to show cause why the return had not been filed. In reply to that notice, the petitioner-firm did not file the four quarterly returns for 1960-61 till 7th October, 1963, that is, more than two years from the receipt of notice and more than two and a half years after the close of the year. These quarterly returns were to be filed on or before 31st July, 1960, 31st October, 1960, 31st January, 1961, and 30th April, 1961. After the filing of the returns, the Assessing Authority passed an order of assessment on 25th October, 1963, creating tax liability of Rs. 1,32,340. 06 on account of sales tax and imposing a penalty of Rs. 10,000 under Section 10 (6) of the Act for the non-filing of the returns and for non-payment of the tax at the proper time. Against that order, the petitioner-firm filed a revision application before the Excise and Taxation Commissioner under Section 21 of the Act on 12th December, 1963, and before its decision, the District Excise and Taxation Officer, Amritsar, moved the Excise and Taxation Commissioner, by letter dated 6th July, 1964, for the enhancement of the penalty. The Excise and Taxation Commissioner then issued a notice to the petitioner-firm on 19th August, 1964, informing it that he had decided to satisfy himself as to the legality and propriety of the proceedings for the year 1960-61 and the order of the Assessing Authority dated 25th October, 1963, in respect thereof and calling upon the petitioner-firm to show cause against such a course. In reply to that notice, the petitioner-firm submitted a reply on 29th September, 1964, saying that the notice issued by the Excise and Taxation Commissioner was as a result of the findings of the Das Commission Report and by way of political vendetta against the petitioner-firm which was owned by Shri Surinder Singh Kairon, son of Shri Partap Singh Kairon. The learned Commissioner, after hearing the parties, passed an order on 2nd October, 1964, enhancing the penalty from Rs. 10,000 to Rs. 1,32,340. 06, that is equal to 100 per cent. of the sales tax levied. , The petitioner-firm then filed a revision petition before the Financial Commissioner which was dismissed on 17th June, 1965. An application under Section 22 (1) of the Act for making a reference to this Court on certain questions of law stated in the application was also dismissed by the learned Financial Commissioner on 16th March, 1966, holding that no question of law arose out of his order which required reference to this Court. The petitioner-firm then filed the present application in this Court.

(3.) FOR the year 1961-62, the petitioner-firm did not file any quarterly return and a notice was issued by the Assessing Authority which was received by the petitioner-firm on 3rd September, 1961, to show cause why the returns had not been filed. On receipt of this notice, the petitioner-firm filed the four quarterly returns for the year 1961-62 on 25th October, 1963. The returns were required to be filed within one month of the expiry of each quarter, that is for the year 1961-62, the quarterly returns had to be filed on or before 31st July, 1961, 31st October, 1961, 31st January, 1962, and 30th April, 1962. After the filing of the returns, the Assessing Authority passed an order of assessment on 11th November, 1963, creating tax liability of Rs. 1,14,055. 40 and imposing a penalty of Rs. 5,000 under Section 10 (6) of the Act for the non-filing of the return and for non-payment of the tax at the proper time. Against the order of assessment, the petitioner-firm filed a revision before the Excise and Taxation Commissioner under Section 21 of the Act on 28th December, 1963, and before its decision, the District Excise and Taxation Officer, Amritsar, moved the Excise and Taxation Commissioner, by letter dated 6th July, 1964, for the enhancement of the penalty. The Excise and Taxation Commissioner then issued a notice to the petitioner-firm on 19th August, 1964, informing it that he had decided to satisfy himself as to the legality and propriety of the proceedings for the year 1961-62 and the order of the Assessing Authority dated 11th November, 1963, in respect thereof and calling upon the petitioner-firm to show cause against such a course. In reply to that notice, the petitioner-firm submitted a reply on 29th September, 1964, saying that the notice issued by the Excise and Taxation Commissioner was as a result of the findings of the Das Commission Report and by way of political vendetta against the petitioner-firm which was owned by Shri Surinder Singh Kairon, son of Shri Partap Singh Kairon. The learned Commissioner, after hearing the parties, passed an order on 2nd October, 1964, enhancing the penalty from Rs. 5,000 to Rs. 1,14,055. 40, that is equal to 100 per cent. of the sales tax levied. The petitioner-firm then filed a revision petition before the Financial Commissioner which was dismissed on 17th June, 1965. An application under Section 22 (1) of the Act for making a reference to this Court on certain questions of law stated in the application was also dismissed by the learned Financial Commissioner on 16th March, 1966, holding that no question of law arose out of his order which required reference to this Court. The petitioner-firm then filed the present application in this Court.