RALSON CARBON BLACK LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) In these petitions, the petitioner has prayed for quashing the orders passed by the Excise and Taxation Officer-cum Assessing Authority, Ward No. 5, Ludhiana (respondent No. 2) under section 9(2) of the Central Sales Tax Act, 1956 (for short, "the B Central Act") read with sections 10(6) and 11-D of the Punjab General Sales Tax Act, 1948 (for short, "the State Act") and the appellate orders passed by the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala and Sales Tax Tribunal-II, Punjab (for short, "the Tribunal").

(2.) The petitioner is a company incorporated and registered under the Companies Act, 1956. It is also registered under the Central Act and the State Act. Due to delayed filing of return and deposit of tax for the quarter ending on June 30, 2000 respondent No. 2 passed order dated November 27, 2000 (annexure P.I in C.W.P. No. 1819 of 2003) and imposed penalty of Rs. 2,25,000 under section 9(2) of the Central Act read with section 10(6) of the State Act and also levied interest amounting to Rs. 1,41,729 under section 11-D of the State Act. Appeals filed by the petitioner were dismissed by the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala, and the Tribunal vide their orders dated November 5, 2001 (annexure P.3) and August 5, 2002 (annexure P.5) respectively. Thereafter, respondent No. 2 issued demand notice, annexure P.6. Similarly, for the quarter ending on September 30, 2000, respondent No. 2 passed order dated November 27, 2000 (annexure P.I in C.W.P. No. 1820 of 2003) and imposed penalty of Rs. 1,43,900 under section 9(2) of the Central Act read with section 10(6) of the State Act and also levied interest amounting to Rs. 14,390 under section 11-D of the State Act. Appeals filed against that order were dismissed by the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala, and the Tribunal. Thereafter, respondent No. 2 issued demand notice, annexure P.6.

(3.) The petitioner has challenged the impugned orders mainly on the ground that respondent No. 2 did not have the jurisdiction to impose penalty under section 10(6) of the State Act on account of delayed filing of return or levy interest under section 11-D of the State Act. It has relied on the judgment of this Court in Oswal Spinning & Weaving Mills Ltd. v. State of Punjab [1996] 103 STC 491 and averred that the orders passed by respondent No. 2, Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala, and the Tribunal ignoring the law laid down by the High Court are liable to be declared illegal and quashed.