Penalty for short deposit sustained where admitted default and inadequate explanation failed to displace findings of lapse.

Penalty for short deposit under the Punjab General Sales Tax Act was upheld because the assessee admitted the default and its explanation of inadvertence and calendar-year based quarterly returns did not rebut the finding of lapse. The Tribunal had considered the explanation, granted adequate opportunity, and treated the failure to file revised returns as a relevant circumstance. No irrelevant factor was shown in the Tribunal's approach, and there was no sufficient basis to interfere with the penalty. The penalty was therefore sustained against the assessee.

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Issues: Whether penalty under section 10(6) of the Punjab General Sales Tax Act, 1948 was legally justified on the facts and circumstances of the case.

Analysis: The Tribunal found that the assessee had admitted the short deposit for the relevant quarter and that the explanation based on inadvertence and filing of quarterly returns on a calendar-year basis did not displace the inference of default. It also noted that adequate opportunity had been afforded, that the explanation had been considered, and that the failure to file revised returns was a relevant circumstance. In these circumstances, the Court found no irrelevant consideration in the Tribunal's approach and no sufficient cause for interfering with the imposition of penalty.

Conclusion: The penalty was held to be legally sustainable and the question was answered against the assessee.

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