False declaration penalty under sales tax law does not cover a return or its appended declaration.

Section 7-A(2) of the Andhra Pradesh General Sales Tax Act penalises only the knowing issue or production of a false bill, voucher, declaration, certificate or similar document to support exemption or reduced tax. A return, and the declaration appended to it, cannot be treated as a separate false declaration or as an "other document" for that provision, because the declaration forms part of the return itself. As the alleged false bill was not actually produced and form E was not filed, penalty under section 7-A(2) was not attracted and the assessee obtained relief.

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Issues: Whether penalty under section 7-A(2) of the Andhra Pradesh General Sales Tax Act could be levied when the assessee did not actually produce the alleged false bill or file the prescribed declaration in form E, and whether the declaration appended to the monthly return or the return itself could be treated as a false declaration or other document within that provision.

Analysis: Section 7-A(2) penalises a dealer who knowingly issues or produces a false bill, voucher, declaration, certificate or other document with a view to support a claim for exemption or reduced tax. The scheme of section 7-A(2) is distinct from section 14, which deals with incorrect returns, non-disclosure of turnover and related defaults. In the context of a penal provision, the declaration appended to a return cannot be treated as a separate declaration within section 7-A(2), because it forms an integral part of the return itself. A return also does not answer to the expression "other document" in that sub-section. The Tribunal's finding that the alleged bill was not actually produced and that form E was not filed therefore assumes decisive importance.

Conclusion: Penalty under section 7-A(2) was not attracted on the facts, and the assessee succeeded on this issue.

Final Conclusion: The revision was allowed, the penalty order was set aside, and the assessee obtained relief.

Ratio Decidendi: A return and its appended declaration cannot be treated as a false declaration or other document under section 7-A(2); that provision applies only where a false bill, voucher, declaration, certificate or similar document is knowingly issued or produced.

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