M.P.CHANDRAKANTARAJ URS, J. - (1.) THESE sales tax revision petitions are by the assessee, M/s. Shanthi Industries, No. 10, Pampamahakavi Road, Shankarapuram, Bangalore 4. The assessee was aggrieved by the order dated March 28, 1981, passed by the Commercial Tax Officer, I Circle, Bangalore, in purported exercise of his power under section 12-B (2) of the Karnataka Sales Tax Act, 1957, pertaining to the assessment year 1977-78.
(2.) THE petitioner-assessee, a registered dealer under the Act, was required to furnish monthly returns and pay advance tax thereon in the relevant assessment year but the same was filed long after it was due and taxes due thereon had not been paid. In the result no tax was paid for the period of 12 months covered under the relevant assessment year. The advance tax payable on monthly turnover was Rs. 31,863. 58 for the assessment year 1977-78. In the result, the maximum penalty provided at 1 (1/2) times the tax not paid in time was worked out to Rs. 47,795 and a penalty of Rs. 47,795 was proposed to be levied and show cause notice in that behalf was issued on September 28, 1979. The assessee in reply to the show cause notice, on October 6, 1979, filed his objection stating that its sales in favour of M/s. Kirloskar and Co. and others were on credit basis and that it would be in a position to pay only after the money was received from its purchasers (debtors ). It further stated that it was operating overdraft in Syndicate Bank and in order to improve its business it had invariably reached the permitted limit and therefore it claimed that there was delay in payment of tax. Similar were the facts in the case of the petitioner in respect of the assessment year 1978-79. The proposition notice proposed to levy a penalty of Rs. 21,162 in accordance with the prescription under section 12-B (2) of the Act. The explanation offered for non-payment of tax and non-filing of returns in time was not exactly identical for the succeeding assessment year as in the case of the assessment year 1977-78, in that the Commercial Tax Officer had taken steps to recover part of the taxes due by resorting to procedure prescribed under section 14 of the Act. The petitioner-assessee therefore brought that to the notice of the Commercial Tax Officer and in his reply to the show cause notice had prayed for further time to pay the amount of tax which had not been recovered under section 14 of the Act. It was in the light of those explanations that the two orders, as earlier noticed dated March 28, 1981 and April 29, 1981, for the years 1977-78 and 1978-79, respectively, came to be passed under section 12-B (2) of the Act by the Commercial Tax Officer. Aggrieved by the said orders the petitioner preferred appeals to the Deputy Commissioner of Commercial Tax (Appeals), Bangalore City Division, Bangalore.
(3.) THE two appeals presented in Appeals Nos. 59 and 104 of 1981-82. By a common order dated August 3, 1981, the appellate authority, partially allowed the appeal reducing the penalty for the assessment year 1978-79 to a sum of Rs. 6,211 while confirming the order of penalty imposed in the sum of Rs. 31,861. 58 for the assessment year 1977-78. Therefore in view of the failure to get the relief prayed for in the appeals the petitioner presented Sales Tax Appeals Nos. 973 and 974 of 1981 before the Karnataka Appellate Tribunal, Bangalore (hereinafter referred to as "the Tribunal" ).;