COMMERCIAL TAXES OFFICER Vs. BOARD OF REVENUE

JUDGEMENT

(1.) THE only question which has been raised in this application seeking a reference under section 15 (2) (b) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act"), which has been treated by us as a revision petition under the amended provisions of the Act, because of the provisions contained in sub-section (10) of section 13 of the Rajasthan Sales Tax (Amendment) Act, 1984, is as to whether penalty under section 16 (1) (e) of the Act could be legally levied upon the assessee in the circumstances of the case. THE assessee, M/s. Rajasthan Roller & Flour Mills Private Ltd. , Kota, carried on business of purchase of wheat and manufacture of wheat flour, maida, suji, etc. THE assessee was registered as a dealer under the provisions of the Act. During the period November 10, 1969 to October 30, 1970, relating to the assessment year 1970-71, the assessee purchased certain quantity of wheat on payment of sales tax at the full rate of 2 per cent and some other quantity of wheat was purchased by him under section 5c of the Act, on payment of concessional rate of sales tax at the rate of 1 per cent. THE wheat so purchased was converted by the assessee into wheat flour (atta), maida, suji, etc. , but on the sale of these commodities no sales tax was paid by the assessee.

(2.) THE assessing authority was of the view that sales tax was payable at the full rate of 2 per cent on the sale of atta, maida, etc. , relatable to that quantity of wheat was purchased on payment of concessional rate of tax at 1 per cent under section 5c of the Act. It was observed by the assessing authority that where the raw material was purchased at a concessional rate of tax under section 5c of the Act, the sale of goods produced therefrom like atta and maida was not exempted from payment of tax under the Act. THE assessee then filed a revised return on February 28, 1974, correctly showing the sales of atta and maida in the taxable turnover. THE assessing authority held that the tax was payable on the sale of atta and maida at 2 per cent. He also issued notice to the assessee as to why penalty should not be imposed under section 16 (1) (3) of the Act for deliberately furnishing inaccurate particulars in its return. THE assessing authority, after considering the explanation furnished by the assessee, imposed a penalty in the sum of Rs. 31,500 upon the assessee under section 16 (1) (e) of the Act by its order dated May 18, 1974.

(3.) WE, therefore, agree with the view taken by the Board of Revenue in its order dated February 16, 1979. There is no force in this revision petition and the same is dismissed. The parties are left to bear their own costs of the proceedings in this Court. Petition dismissed. .