Strict construction of sales tax penalty provision: later-produced certificate could not prove returns were false at filing.

Penalty under section 45A(1)(d) of the Kerala General Sales Tax Act was held not exigible because the Revenue failed to prove that the returns, as filed, were untrue or incorrect. Section 45A being penal in nature, it had to be strictly construed, and the charge related to the falsity of the return at the time of filing. The alleged forged certificate came into existence only later and was not in the assessee's possession when the returns were submitted, so its later production could not establish that the original returns were false. No independent material showed that the returns were unfounded, and the assessee succeeded.

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Issues: Whether penalty under section 45A(1)(d) of the Kerala General Sales Tax Act, 1963 was exigible for filing untrue or incorrect returns when the alleged forged certificate was not in existence or in the assessee's possession at the time the returns were filed.

Analysis: Section 45A is a penal provision and must be strictly construed. The initial burden lay on the Revenue to establish that the returns as filed were untrue or incorrect. The returns were filed before 30 April 1986, whereas the certificate later said to be forged came into existence only on 27 October 1986 and was produced much later. At the time of filing the returns, no reliance was placed on that certificate, and the assessee was not even in possession of it. The charge under section 45A(1)(d) concerns the filing of an untrue or incorrect return itself, not the later production of material said to support the exemption claim. No independent material was shown to prove that the returns, as filed, were false or unfounded.

Conclusion: Penalty was not exigible under section 45A(1)(d), and the assessee succeeded.

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