Wilful default for sales tax registration requires deliberate failure to apply; no liability arose where the assessee had sought registration.

Section 12(5) of the Orissa Sales Tax Act, 1947 applies only where a dealer was liable to tax and wilfully failed to apply for registration. On the facts, the assessee had already applied for registration and had represented that he was liable to tax; the later omission to file a fresh application after rejection of the first request was attributed to the assessing officer's failure to inform him of that rejection, not to any deliberate attempt to evade taxation. The requisite element of wilful default was therefore absent, and assessment and penalty under that provision could not be sustained.

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Issues: Whether the assessee had wilfully failed to apply for registration so as to attract assessment and penalty under section 12(5) of the Orissa Sales Tax Act, 1947.

Analysis: Section 12(5) applies only where a dealer was liable to pay tax and nevertheless wilfully failed to apply for registration. The assessee had in fact applied for registration and had represented that he was liable to tax. On the facts, the non-filing of a fresh application after rejection of the first application was attributable to the assessing officer's failure to inform him of the rejection, and not to any deliberate attempt to avoid taxation. The element of wilful default necessary for section 12(5) was therefore absent.

Conclusion: Section 12(5) of the Orissa Sales Tax Act, 1947 did not apply, and the assessments could not be sustained under that provision.

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