PATHAK, J. - (1.) AT the instance of the Commissioner of Sales Tax the Additional Judge (Revisions), Sales Tax, has referred the following question : "Whether the authority under section 10-A of the Central Sales Tax Act shall not impose any penalty without the previous permission of the Commissioner, Sales Tax, U.P. ?"
(2.) THE reference relates to the year 1960-61. The respondent, M/s. Janta Furniture Mart, Deoria, was visited with a penalty for its failure to instal a diesel engine and a saw machine, obtained against 'C' forms, within a year. Apparently, the penalty was imposed under section 10-A(1) by reference to the offence mentioned in section 10(d) of the Central Sales Tax Act. Section 10(d) makes a person punishable, if after purchasing any goods for any purpose specified by section 8(3)(b) he fails, without reasonable excuse, to make use of the goods for such purpose. The assessee appealed against the order, and the appeal was allowed by the Assistant Commissioner (Judicial), Sales Tax, on two grounds, one being that the assessee had not been allowed an opportunity of showing cause against the penalty, and the other being that the penalty proceedings were taken without the prior sanction of the Commissioner of Sales Tax. A revision application was filed by the Commissioner, and was rejected by the Additional Revising Authority. The Additional Revising Authority disagreed with the view taken by the Assistant Commissioner (Judicial) that the assessee had no opportunity to show cause against the penalty, but he affirmed the view that before the penalty could be imposed, the permission of the Commissioner had to be obtained. And now this reference has been made. The provisions of the U.P. Sales Tax Act have been imported into the Central Sales Tax Act in certain matters. At the time when the penalty order was made, section 9(3) of the (Central Sales Tax Act provided : "9. (3) The authorities for the time being empowered to assess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India and subject to any rules made under this Act, assess, collect and enforce payment of any tax, including any penalty, payable by a dealer under this Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences shall apply accordingly : Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, by rules made in this behalf, make necessary provision for all or any of the matters specified in this sub-section, and such rules may provide that a breach of any rule shall be punishable with fine which may extend to five hundred rupees; and where the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues."
(3.) RECENTLY , however, Parliament enacted the Central Sales Tax (Amendment) Act, 1969, which has substituted a new provision in place of the original section 9. The newly enacted section takes effect retrospectively as from the date of the commencement of the principal Act, and sub-section (2) thereof provides : "(2) Subject to the other provisions of this Act and the Rules made thereunder, the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax, including any penalty, payable by a dealer under this Act as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, refunds, penalties, compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly : Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, by rules made in this behalf, make necessary provision for all or any of the matters specified in this sub-section." ;