V. K. SINGHAL, J. - (1.) IN these revision petitions filed under section 15 of the Rajasthan Sales Tax Act, 1954, the only point challenged is that there was no reasonable cause in not furnishing the returns which were required to be filed under section 7 (1) of the Rajasthan Sales Tax Act within time prescribed. The matter pertains to the assessment years 1980-81, RST/cst and 1983-84. According to the assessee, the statements of sales were sent by the company to its advocate by registered post. At the time of assessment, the assessing authority found that the returns have not been submitted in time and, therefore, the provisions of section 7aa were invoked.
(2.) IN appeal before the Deputy Commissioner (Appeals), the matter was considered, but the appeal with regard to levy of penalty was rejected. When the matter was taken up before the Rajasthan Sales Tax Tribunal, it was submitted that the returns were sent duly completed to the advocate by registered post for submitting it in the office of the Commercial Taxes Officer. Copies of the forwarding letters addressed to the advocate were submitted before the Tribunal. The Sales Tax Tribunal observed that normally the company expected that his advocate would file the returns in time as he had been doing in the past, but unfortunately lapse was committed and returns could not be submitted in time. The matter was considered in detail and it was observed that for the default of advocate the company cannot be penalised and levy of penalty was set outside. Section 7 (1) of the Rajasthan Sales Tax Act contemplates furnishing of prescribed return. It has been provided under section 7aa that if the assessing authority in the course of any proceedings under this Act, is satisfied that any dealer has without reasonable cause failed to furnish the return under sub-section (1) of section 7 within the time allowed, he may direct that such dealer shall pay by way of penalty, in addition to the amount of the tax, if any, payable by him. The language which has been used is that there should be satisfaction of the assessing authority and the satisfaction should be to this effect that the dealer has without reasonable cause failed to furnish the return under sub-section (1) of section 7 within the time allowed. The levy of penalty is not automatic. Every non-submission of return, does not invite the provisions of section 7aa. The Act has contemplated a procedure even for the purposes of levy of penalty and rule 54 of the Rajasthan Sales Tax Rules provides that where an assessing authority determines the turnover of a dealer at a figure different from that declared in the return submitted by the dealer, or imposes a penalty under section 16, or refuses to grant a refund applied for by the dealer, the assessing authority hall briefly record the reasons therefor; and no such order shall be passed unless the dealer has been given a reasonable opportunity of being heard. The Rajasthan Sales Tax Rules were framed in 1955 and at that time the provisions of section 7aa were not in existence and this rule has not specifically mentioned the provisions of section 7aa to be covered under the said rule, but on the basis of the principles of natural justice it is expected that the assessing authority has to issue a notice before levy of penalty. When a notice is issued, the assessee has to explain the cause for non-submission or delayed submission of returns. That cause has to be examined by the assessing authority and if it is found that the said cause is reasonable then no penalty can be levied. The cause which was explained by the assessee in this case was that on its part they have sent the returns and have also paid tax. From the statement of the tax deposited it is evident that there was no such delay in making payment of tax. This is an additional ground on the basis of which it could be considered that the assessee had a reasonable cause for having belief that the returns sent to its advocate will be submitted in due course. When tax itself was deposited there could not have been any object or intention on the part of the assessee not to submit the returns. The point as to whether the cause which has been shown in a reasonable cause or not is primarily a question of fact and if the assessing authority is not satisfied then the appellate authority has to examine for the reasons which are recorded, as to whether it could be considered as reasonable cause. The Sales Tax Tribunal has considered it to be a reasonable cause and also taken into consideration the conduct of the assessee in the past. I have considered over the entire circumstances, in which the Sales Tax Tribunal came to the conclusion that it was a reasonable cause on the part of the assessee and therefore, no penalty under section 7aa of the Act could be levied. I am in agreement with the view taken by the Tribunal and accordingly, it is held that the Tribunal was justified in holding that the assessee had reasonable cause and no case for invoking the provisions of section 7aa is made out. The revision petitions are dismissed accordingly. No order as to costs. Petitions dismissed. .;