VARDHMAN SPINNING AND GENERAL MILLS LIMITED Vs. STATE

JUDGEMENT

(1.) M/s Vardhman Spinning and General Mills Limited, Ludhiana (hereinafter referred to as the petitioner), was assessed for the year 1969-70 by the Assessing Authority on 6th October, 1970. Earlier the Assessing Authority issued a notice under Section 10 (6) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act), for showing cause as to why penalty should not be imposed for the short deposit of purchase tax for the quarters ending 30th June, 1969, 30th September, 1969, 31st December, 1969, and 31st March, 1970. The petitioner filed his reply and also appeared in person before the Assessing Authority. The position taken in the reply was that there was no short deposit of purchase tax for the 1st, 2nd and 4th quarters. However, the purchase tax for the 3rd quarter ending 31st December, 1969, had been short deposited due to some clerical error. There was no mala fide intention in the short remittance and in the circumstances no penalty deserved to be imposed.

(2.) ON consideration of the entire matter, the Assessing Authority imposed a penalty of Rs. 6,000 on account of short deposit of purchase tax vide its order dated 6th October, 1979.

(3.) FEELING aggrieved from the orders of the Assessing Authority, the petitioner preferred an appeal, but the same was rejected by the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala.