SWANI MOTORS LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioner-company carried on the business in automobiles at Amritsar and was registered as a dealer under the Punjab General Sales Tax Act, 1948 (for short, "the Act") and also under the Central Sales Tax Act, 1956. The petitioner filed quarterly returns for the quarters ending 30th September and 31st December, 1995, within the prescribed period. Tax, as per those two returns, was also deposited in the State Bank of Patiala, Amritsar, by issuing cheques drawn on the Punjab and Sind Bank, Amritsar, as under :

(2.) ASSISTANT Excise and Taxation Commissioner issued notices to the petitioner-company twice stating therein that the petitioner-company had failed to deposit the tax due for the quarters ending 30th September and 31st December, 1995. The petitioner-company explained that tax had been duly deposited and, in proof thereof, the State Bank of Patiala had certified the deposit of tax. It was explained that the challans had been duly attached with the quarterly returns filed by the assessee. The petitioner, however, received a third notice from the Assessing Authority to the effect that the tax had been deposited by cheques whereas it should have been paid directly before October 20, 1995 and January 20, 1996 for the second and third quarters respectively. The petitioner-company again explained that the State Bank of Patiala had been authorised to receive the amount of sales tax and had been collecting tax for the last 20 years. A certificate from the Manager of the said bank was also filed. It was further explained that the tax had been deposited before the expiry of the due date. An assessee was required to deposit tax as per the return within 30 days from the end of the quarter. The Assessing Authority, however, did not accept the petitioner's plea and imposed penalty under section 10 (6) of the Act and levied interest under section 11d of the Act as under :

(3.) THE plea of the respondents is that tax for the second quarter of the assessment year 1995-96 was required to be deposited by 20th day of October, 1995, and for the third quarter by the 20th day of January, 1966. A period of 30 days was available for deposit of tax in cash. When the assessee chooses to deposit tax through cheques, the period prescribed under rule 20 of the Punjab General Sales Tax Rules, 1949 (for short, "the Rules") is 20 days only. It is pointed out that the assessee had deposited tax for both the quarters in question very late and, therefore, interest and penalty were rightly levied. Tax had been deposited for the second quarter with a delay of 8 days and for the third quarter with a delay of 7 days. Since it was a contravention of rule 20 of the Rules, it invited the levy of interest and the imposition of penalty. It is also stated that, for the deposit of tax, it was the State Bank of India which was treated to be the appropriate Government treasury and not the State Bank of Patiala.