Prior approval requirement for penalty under sales tax machinery applies to Central Sales Tax proceedings and makes action without approval void.

Where the Central Sales Tax Act adopts the State sales tax machinery for penalty proceedings, the restrictions attached to the State authority's power apply equally. The assessing authority's power to impose penalty under the U.P. Sales Tax Act was conditional on previous approval of the Commissioner or an authorised officer, and that condition continued to govern action taken under section 10-A of the Central Sales Tax Act through section 9. Because the required approval was not obtained, the penalty proceedings were without jurisdiction and could not be sustained.

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Issues: Whether, in proceedings for penalty under section 10-A of the Central Sales Tax Act, the assessing authority was bound to obtain the previous approval of the Commissioner of Sales Tax under section 15-A(5) of the U.P. Sales Tax Act.

Analysis: The Central Sales Tax Act, through section 9, adopts the machinery and powers of the State sales tax law for assessment and penalty proceedings, and the authority empowered under the State Act acts for the Central Act subject to the same powers and restrictions. The power to impose penalty under section 15-A of the U.P. Sales Tax Act was vested in the assessing authority, but that power was expressly conditioned by the requirement of previous approval of the Commissioner or an authorised officer. Since that limitation was attached to the very grant of power, it applied equally when the assessing authority acted under section 10-A of the Central Sales Tax Act by virtue of section 9. As the statutory condition was not fulfilled, the penalty proceedings lacked jurisdiction.

Conclusion: Previous approval of the Commissioner of Sales Tax was necessary, and the penalty proceedings taken without such approval were without jurisdiction. The question was answered in favour of the assessee.

Ratio Decidendi: Where the Central Sales Tax Act adopts the State sales tax machinery for imposing penalty, the statutory restrictions attached to the State authority's power, including a requirement of prior approval, operate with equal force and any penalty imposed in breach of that condition is jurisdictionally invalid.

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