GULATI, J. - (1.) THIS is a reference under section 11(1) of the U.P. Sales Tax Act.
(2.) FOR the assessment year 1967-68, the assessee filed its third quarterly return within time but did not deposit the admitted tax either before or at the time of filing the return. The Sales Tax Officer imposed upon him a penalty under section 15-A(1)(a) of the U.P. Sales Tax Act (hereinafter referred to as the Act). On appeal, the quantum of penalty was reduced, but it was not cancelled. On revision, the revising authority accepted the assessee's plea that the case was not covered by section 15-A(1)(a) of the Act and, as such, the penalty was illegal. At the instance of the Commissioner of Sales Tax, the following question of law has been referred to us for opinion : "Whether, on the facts and in the circumstances of the case, when the assessee did not deposit the admitted tax either before filing of the return or along with the return, imposition of penalty under section 15-A(1)(a) of the U.P. Sales Tax Act was justified ?" Section 15-A of the Act provides for penalties. Sub-section (1), which is material for our purposes, reads : "15-A. Penalty for failure to file returns. - (1) If the assessing authority is satisfied that any dealer - (a) has without reasonable cause failed to furnish the return of his turnover which he has required to furnish under section 7, 7-A or 18, or has, without reasonable cause, failed to furnish it within the time allowed and in the manner prescribed .......... he may direct that such dealer shall pay, by way of penalty ......."
(3.) ADMITTEDLY , the assessee had furnished the return within time but it is contended that because he had not deposited the admitted tax before or at the time of filing of return, the return was not furnished in the manner prescribed and, as such, he became liable to penalty. The material portion of section 7 is as under : "7. Determination of turnover and assessment of tax. - (1) Every dealer who is liable to pay tax under this Act shall submit such return or returns of his turnover at such intervals, within such period, in such form and verified in such manner, as may be prescribed ............. (1-A) Before submitting the return under sub-section (1) or along with such return the dealer shall deposit in such manner as may be prescribed the amount of tax due on the turnover shown in such return." ;