MALICK ELECTRIC WORKS Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE Sales Tax Tribunal has referred to this Court for opinion the following four common questions of law :

(2.) THE assessee is a partnership firm. Its business is that of manufacturing house service electrical meters. It is registered under the Bombay Sales Tax Act, 1959 (for short "the Act" ). The period of assessment involved is from April 1, 1962 to March 31, 1963 and from April 1, 1963 to March 31, 1964. It is common ground that the returns were filed by the assessee in time and the assessments were originally completed on August 5, 1967 and December 30, 1967, respectively. Subsequently, on July 7, 1969, the Sales Tax Officer, Enforcement Branch, paid a visit to the assessee's place of business. He compared its turnover with that of Messrs. Havells and found some discrepancy. Having reason to believe that the assessee's turnover of sales liable to sales tax had, in respect of those two years, been underassessed as a result of concealment of particulars by the assessee, the Sales Tax Officer issued notices under section 35 of the Act on march 29, 1971, which were served on the assessee on April 19, 1971. It is also common ground that the assessments for both the periods resulted in enhanced determination of taxable sales.

(3.) BEING of the view that the penal provisions of section 36 (2) (c) were attracted, the Sales Tax officer, after allowing the assessee opportunity of being heard, imposed certain amounts by way of penalty. The orders imposing penalty were challenged. While upholding the finding of the sales Tax Officer as regards concealment and the applicability of section 36 (2) (c), the Tribunal reduced the quantum of penalty to Rs. 15,000 and Rs. 35,000 for the respective years.