MILAP CHANDRA J. - (1.) THIS revision petition has been filed against the order of the Rajasthan Sales Tax Tribunal, Ajmer dated August 21,1989 by which it has held that penalty under Section 7aa, Rajasthan Sales Tax Act, 1954 (hereinafter to be called' the Act') for failure to file quarterly returns cannot again be imposed while passing final assessment order under Section 10 of the Act if it had earlier been imposed while passing provisional assessment order under Section 7a of the Act. The facts of the case giving rise to this revision petition may be summarised thus.
(2.) THE assessee-non-petitioner did not file returns of the first and second quarters (01. 01-81 to 31. 03. 81 and 01-04 to 81 to 30. 4. 81. THE provisional assessment orders under Section 7a of the Act were passed on 15- 06-1981 and 18-08-1981. Penalties of Rs. 460/- and Rs. 170/- were imposed under Section 7aa of the Act for not filing returns of the first and second quarters. Penalty of Rs. 3, 526/- was again imposed under section 7aa of the Act while passing final assessment order on 12-05-86 under Section 10 of the Act. THE said amounts of penalties of Rs. 460/and Rs. 170/- were not adjusted in the said amount of penalty of Rs. 3,526/ -. On the rectification-application moved by the assessee, these amounts were duly adjusted by the assessing authority by its order dated 31-12-1986. the assessee filed an appeal against the order dated 12-05-1986 and 31-12-1986 on the ground that penalty under section 7aa of the Act cannot be imposed twice for not filing the same quarterly return, one during the provisional assessment under Section 7aa and the other during the final assessment under section 10 of the Act. THE learned Dy. Commissioner (Appeals) dismissed the appeal holding that the amounts of penalties imposed in the provisions assessments have duly been adjusted by order dated 31-12-1986. THE assessee preferred second appeal before the Rajasthan Sales Tax Tribunal, Ajmer. It was allowed by its order dated August 21,1989 holding that penalty under Section 7aa of the Act cannot again be imposed for the default in filing the same quarterly return. It has been contended by the learned counsel for the petitioner that the penalty imposed under Section 7aa of the Act during the provisional assessment under Section 7a was provisional. It was subject to final order of penalty which could by passed during the final assessment under Section 10 of the Act and if the view taken by the Tribunal is accepted, it would render the provisions of Section 7aa of the Act redundant and otiose. There is no force in the revision petition. It is well settled law that penalty and tax have distinct and separate concepts, penalty proceedings and assessment proceedings are independent and these proceedings are quasi-criminal in nature. Penalty for the failure to file returns can be imposed under Section 7aa of the Act even after the assessment order is passed either under Section 7a or under Section 10 of the Act. Section 7aa of the Act contains provisions regarding imposition of penalty for failure to furnish returns. It does not speak of the provisional imposition of penalty like provisional assessment under Section 7a of the Act. There is yet another aspect of the matter. It is clear from the provisions of Section 7aa of the Act that penalty can be imposed under it for failure to furnish returns if the assessing authority is satisfied that the dealer has, without reasonable cause, failed to furnish the same within the time allowed. In the absence of a finding that the assessee has failed to furnish returns without reasonable cause, no penalty under this section can be imposed. Such a finding is a condition precedent for imposition of the penalty under Section 7aa of the Act. Admittedly, it is not the case of the petitioner that such a finding was recorded while passing the order imposing penalty under Section 7aa either provisionally or finally. There is also nothing on the record to indicate that an opportunity of hearing was given to the assessee before imposing this penalty. As such the order dated 12-05-1986 imposing penalty of Rs. 3,526/-under Section 7aa of the Act has rightly been set aside by the learned Tribunal. The revision petition is accordingly dismissed. . ;