Rajes Kumar, J. - (1.) These two revisions Under Section 11 of the U.P. Sales Tax-Act,-1948 (hereinafter referred to as "the Act") are directed against the order of Tribunal dated April 11, 1994 relating to the assessment year 1988-89. Revision No. 620 of 1994 relates to the penalty Under Section 8-D(6) of the Act and Revision No. 621 of 1994 relates to the payment of interest Under Section 8-D(7) of the Act.
(2.) Brief facts of the case are that the applicant entered into contract with National Thermal Power Corporation (hereinafter referred to as "NTPC") for the construction 220 KVA sub-station at Mandaula, Ghaziabad, U.P. Offer was given on December 28, 1988, which was accepted on January 12, 1989. It appears that towards advance a sum of Rs. 8 crores was paid on February 21, 1989 and Rs. 4 crores was paid on March 31, 1989 by the applicant to NTPC. Admittedly, work had not been started and the goods had not been transferred to the applicant during the year under consideration. Assessment was made by the assessing authority Under Section 7(3) in respect of the payment made by the applicant but the same has been quashed by the Tribunal on the ground that the payment was made towards the advance and no material was supplied during the year under consideration. However, penalty levied by the assessing authority Under Section 8-D of the Act has been sustained by the Tribunal on the ground that in pursuance of the contract, payment was made by the applicant and therefore, amount should have been deducted Under Section 8-D(l) of the Act. For the non-deduction Under Section 8-D(l) of the Act and for non-deposit of the amount within specified period interest Under Section 8-D(7) of the Act has also been charged, which has been upheld by the Tribunal.
(3.) Heard learned Counsel for the parties.;