State penalty for late sales tax returns applies where Central law adopts State return and penalty machinery.

Under the Central sales tax framework, State sales tax provisions governing returns and penalties apply to assessments and collection, subject to the Central Act and rules. A return filed in Form V had to follow the State law on manner and time of submission, and delay in filing was treated as a breach of the State return provisions rather than of the Central Rules. Rule 12 of the Central Rules could not override that statutory scheme. The special penal provision in section 17(3) of the Madhya Pradesh General Sales Tax Act, 1958 therefore governed late filing and validly supported penalty.

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Issues: Whether penalty for late submission of returns in Form V under the Madhya Pradesh Sales Tax (Central) Rules, 1957 could be imposed under section 17(3) of the Madhya Pradesh General Sales Tax Act, 1958.

Analysis: Section 9(3) of the Central Sales Tax Act, 1956 applies the State sales tax law, including provisions relating to returns, penalties and offences, to assessments and collection under the Central Act, subject to rules made under the Central Act. Rule 7-A of the Central Rules did not itself prescribe the manner and date of filing returns beyond requiring use of Form V and reference to the State law for the manner and time of submission. Any default in filing within time was therefore a breach of the State return provisions, particularly rule 15 of the Madhya Pradesh General Sales Tax Rules, 1959, rather than a breach of rule 7-A. Rule 12 of the Central Rules could not override the statutory scheme under section 9(3), and in any event section 17(3) of the State Act, being the special penal provision for failure to furnish returns within time, would prevail.

Conclusion: Penalty for late submission of returns in Form V could validly be imposed under section 17(3) of the Madhya Pradesh General Sales Tax Act, 1958.

Final Conclusion: The reference was answered in favour of the Revenue, and the State penal provision was held applicable to delayed filing of Central sales tax returns.

Ratio Decidendi: Where the Central sales tax framework adopts the State machinery for returns and penalties, a delay in filing a return prescribed by reference to the State law is punishable under the special State penal provision, and a general rule under the Central Rules cannot displace that statutory scheme.

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