COMMERCIAL TAXES OFFICER Vs. RAJDHANI WINES

JUDGEMENT

(1.) THE revision petition has been filed under section 15 of the Rajasthan Sales Tax Act, 1954 and the following question of law has been raised for the decision of this Court : Whether, in the facts and circumstances of the case, the Tribunal was justified in setting aside the penalty under section 16 (1) (e) of the Act ? Brief facts giving rise of the present revision are that the Commercial Taxes Officer (A. E.) visited the premises of the assessee on 17th January, 1989 and found that the imported liquor of Rs. 1,85,199. 77 has been sold by the assessee, which has been shown as tax-free in the return. THE assessee has submitted the revised return on 24th January, 1989 and has also deposited the tax. THE assessing authority considered that this return has not been submitted within the time stipulated under section 7 (3) of the Act and, therefore, held that the assessee has committed offence by not disclosing the turnover as taxable in the return and as such levied penalty under section 16 (1) (e) of the Act. An appeal was preferred to the Deputy Commissioner (Appeals) which was rejected and thereafter second appeal was preferred to the Sales Tax Tribunal. Before the Sales Tax Tribunal, it was contended that the assessee is dealing in Indian made foreign liquor (IMFL) and this foreign liquor was purchased from Delhi, where it was tax free. THE purchases were duly entered in the books of accounts and the sales were also shown. THE assessee was under bona fide belief that the foreign liquor is not liable to tax and as such has not collected even the tax on the sales thereof. THE Tribunal after considering the judgment of this Court in the case of Commercial Taxes Officer v. Sojat Lime Co. [1989] 74 STC 288 has set aside the penalty. THE judgment in the case of Murarilal Ahuja & Sons [1986] 61 STC 393 (Raj) was also referred to.

(2.) THE provisions of section 16 (1) (e) of the Rajasthan Sales Tax Act are as under : " 16. Offences, penalties and prosecutions, etc.- (1) If any person - (e) has concealed any particulars from any return furnished by him or has deliberately furnished inaccurate particulars therein. . . . . . . . "