SANT LAL TEK CHAND Vs. STATE OF HARYANA

JUDGEMENT

(1.) The Sales Tax Tribunal, Haryana (for short, "the Tribunal") has referred the following questions for the opinion of this Court:

(2.) The petitioner is running a rice sheller at Kaithal and is also doing the business of commission agency. It is registered as a dealer under the Haryana General Sales Tax Act, 1973 (for short, "the 1973 Act"). It has been filing returns under Section 25(2) of the 1973 Act on quarterly basis. In the third quarterly return filed for the period ending on December 31, 1975 (assessment year 1975-76), the petitioner did not disclose the purchase of paddy valued at Rs. 9,20,554 and did not deposit the tax, i.e., Rs. 65,727 as required by Section 25(3). While finalising the assessment, the Assessing Authority noted that the petitioner had not filed correct return and observed that this was done with a view to avoid the payment of tax. He, therefore, issued notice to the petitioner proposing to levy penalty under Section 48 of the 1973 Act. The same was accompanied by a detailed memo containing the facts relating to the incorrect return. In the reply filed on behalf of the petitioner, it was pleaded that difference between quarter to quarter is due to the practice of paying tax on receipt of sale proceeds invoice. It was also pleaded that the legal requirements of paying tax on purchase value at the time of dispatch is impracticable by reason of impossibility of computing the purchase value of paddy. It was further pleaded that the tax due for the third quarter had been paid in the fourth quarter. In the course of hearing before the Assessing Authority, the petitioner's representative submitted that the tax was withheld in the third quarter to tide over the financial crisis faced by the firm. The Assessing Authority did not accept the explanation of the petitioner and imposed penalty of Rs. 1,31,455 vide his order dated May 10, 1980 by making the following observations :

(3.) The first appeal filed by the petitioner was dismissed by Joint Excise and Taxation Commissioner (Appeals), Ambala (hereinafter described as "the Appellate Authority") vide his order dated March 31, 1983, the relevant extracts of which are reproduced below: