Assessing authority alone may levy penalty for escaped turnover after additional assessment under sales tax law.

Section 14(4) of the Andhra Pradesh General Sales Tax Act links reassessment of escaped turnover with the imposition of penalty in the same proceeding. The expression "such authority" refers to the assessing authority that makes the additional assessment, because that authority is best placed to decide whether non-disclosure by the dealer justifies penalty. Accordingly, only the assessing authority that completed the reassessment is competent to levy the penalty; a penalty imposed by a different authority is invalid and cannot be sustained.

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Issues: Whether, under section 14(4) of the Andhra Pradesh General Sales Tax Act, 1957, the authority which made the additional assessment alone could impose the penalty for escaped turnover, and whether a penalty imposed by another authority was valid.

Analysis: Section 14(4) authorises the assessing authority to reassess escaped turnover and, in the same proceeding, direct payment of penalty where non-disclosure by the dealer has resulted in under-assessment. The expression "such authority" refers to the very authority that makes the additional assessment. The power to assess escaped turnover and the power to levy penalty are treated as linked functions in the same proceeding, because the authority making the reassessment is in the best position to decide whether penalty is warranted.

Conclusion: Only the assessing authority that made the additional assessment was competent to levy the penalty. The penalty imposed by another authority was invalid and could not be sustained.

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