SARDAR METAL STORE Vs. STATE OF HARYANA

JUDGEMENT

(1.) THIS order will dispose of a Sales Tax reference made by the Sales Tax Tribunal, Haryana whereby the following questions of law has been referred to this Court for its opinion Under Section 42 (1) of the Haryana General Sales Tax Act, 1973 (hereinafter called the Act):" Whether in the facts and circumstances of the case the provisions of Section 48 of the Haryana General Sales Tax Act, 1973 are applicable to those cases where maintenance of false accounts has been proved before the assessment of the case? "

(2.) FACTS giving rise to the aforesaid question may first be noticed. One M/s. Manchanda Metal Works, Jagadhri filed a complaint with the Assessing Authority to the effect that it had been delivered a consignment of goods against receipt No. 10002 dated 28. 6. 1975 in which M/s. Vijay Metal Works, Delhi had been mentioned as consigner and the complainant as consignee. M/s. Sardar Metal Store, Jagadhri the respondent herein (for short the assessee) claimed those goods stating that on account of negligence of the transporters those had been wrongly delivered to the complainant. The assessee requested the Assessing Authority to release the goods. Thereupon the Assessing Authority directed the assessee to produce its account books for the year 1975-76 for verification whether or not the payment of Rs. 25,000/shown in the bill to have been made by the consignee by way of advance had been accounted for by the respondent in its books. The assessee was unable to show from his books any entry regarding the advance payment of Rs. 25,000/ -. It had also been alleged that market value of the goods was Rs. 75,000/- and not Rs. 40,000/- as shown in the bill. After hearing the parties the Assessing Authority held that the goods belonged to the assessee and by purchasing them under a false name the assessee has supressed the purchases by not entering the advance payment of Rs. 25,000/- in its account books. The Assessing Authority also found that the assessee had maintained false and incorrect accounts with a view to suppress its purchases. The Assessing Authority as per order dated 19. 8. 1975 imposed a penalty of Rs. 25,000/- Under Section 48 of the Act. The assessee filed an appeal before the Deputy Excise and Taxation Commissioner who dismissed the same and upheld the order of the Assessing Authority. Still not satisfied, the assessee filed a second appeal before the Sales Tax Tribunal, Haryana. The Tribunal accepted the appeal and set aside the orders of the authorities below on the ground that penal action Under Section 48 of the Act could not have been taken since that Section is applicable only after the dealer had filed its returns and its returns or accounts were found to be incorrect. The State of Haryana filed an application Under Section 42 (1) of the Act requiring the tribunal to refer the aforesaid question of law to this Court which was allowed. This is how the matter is before as for answering the aforesaid question of law.