Penalty for non-filing of sales tax return cannot rest on false or inaccurate return provisions.

Penalty under section 15-A(1)(b) of the U.P. Sales Tax Act cannot be imposed for total non-filing of a turnover return. Section 15-A(1)(a) governs failure to furnish a return within the prescribed time, while section 15-A(1)(b) applies only where a return has been filed but is false or inaccurate. Because the two clauses address different defaults and carry different consequences, proceedings for no return at all must be taken under clause (a), not clause (b). The provision in clause (b) was therefore inapplicable to complete non-filing, and the issue was decided against the department.

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Issues: Whether penalty under section 15-A(1)(b) of the U.P. Sales Tax Act could be imposed when no return of turnover had been furnished under section 7 of the Act.

Analysis: Section 15-A(1)(a) deals with failure to furnish a return within the prescribed time, while section 15-A(1)(b) applies where a return has been submitted but is false or inaccurate. The two clauses cover different situations and provide different consequences. Where no return has been filed, proceedings can be initiated only under clause (a), and not under clause (b).

Conclusion: The provision under section 15-A(1)(b) was not applicable to a case of total non-filing of return, and the question was answered in the affirmative against the department and in favour of the assessee.

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