Wilful suppression of turnover is required to sustain penalty under Section 14(8); bona fide mistake defeats it.

Penalty under Section 14(8) of the Andhra Pradesh General Sales Tax Act can be sustained at the higher level only where the assessing authority is satisfied that the dealer's failure to disclose turnover or correct particulars was wilful. The provision distinguishes wilful suppression from non-wilful error, and the proviso excludes penalty where the omission is due to a bona fide mistake. On the stated facts, the Tribunal found no wilful suppression and deleted the major additions, so the statutory condition precedent for penalty was absent and relief followed.

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Issues: Whether penalty under Section 14(8) of the Andhra Pradesh General Sales Tax Act could be sustained when the dealer's failure to disclose turnover was not found to be wilful.

Analysis: Section 14(8) permits penalty at the higher level only where the assessing authority is satisfied that the failure to disclose the whole or part of the turnover or other particulars correctly was wilful. The provision distinguishes wilful failure from non-wilful failure, and the proviso excluding penalty for bona fide mistake operates in the non-wilful sphere. Since the Tribunal deleted major additions and recorded a finding that there was no wilful suppression of turnover, the condition precedent for invoking clause (a) was absent.

Conclusion: Penalty was not leviable under Section 14(8), and the assessee was entitled to relief.

Ratio Decidendi: Penalty under Section 14(8)(a) is sustainable only on a finding of wilful failure to disclose turnover; absent such a finding, the penalty cannot stand.

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