GOYAL OIL MILLS Vs. THE STATE

JUDGEMENT

(1.) THE following question of law has been referred to us for our opinion by the Sales Tax Tribunal at the instance of the Assessee -

(2.) IT has arisen in these circumstances. Firm Goyal Oil Mills of Ludhiana was engaged in the business of groundnuts etc. On 27th February, 1965, for the assessment year 1961 -62, the Assessing Authority created a liability of purchase tax to the extent of Rs. 12,871,34 regarding this firm, and it also imposed a penalty of Rs. 1,800 under Section 10(6) of the Punjab General Sales Tax Act, 1948 (hereinafter called the Act) on account of the delay in the payment of this tax by the said firm. Against this order the Firm filed an appeal before the Deputy Excise and Taxation Commissioner and the same was rejected on 17th March, 1966. Thereafter a revision was preferred and it was dismissed by the Joint Excise and Taxation Commissioner on 19th July, 1966. A second appeal before the Sales Tax Tribunal also met with the same fate on 9th April, 1968. Then an application under Section 22(1) of the Act was made by the Assessee to the Tribunal for referring the above mentioned question of law to this Court and that is how the matter has come before us.

(3.) SECTION 10 of the Act deals with the payment of tax and filing of the return by the Assessee. The penalty is imposed under Sub -section (b) thereof. The relevant part of Section 10 reads -