Revised return before assessment defeats penalty for inadvertent turnover omission under sales tax law.

Penalty under section 12(5)(iii) of the Tamil Nadu General Sales Tax Act was held not leviable where the assessee had filed a revised return correcting an inadvertent omission in turnover before completion of assessment. The explanation that the mistake arose from office negligence was accepted as bona fide, and the corrected disclosure was made before the assessment was finalised. On that footing, the default for penal consequences was treated as not surviving, and the penalty order was found unsustainable.

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Issues: Whether penalty under section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, 1959 was leviable when the assessee filed a revised return correcting mistakes in the original return before completion of assessment.

Analysis: The return originally filed contained an omission in turnover, but the assessee explained that the error occurred through negligence of office staff and was corrected by filing a revised return before finalisation of the assessment. The explanation was accepted as bona fide. Since the corrected turnover was disclosed before the assessment was completed, the default attracting penalty was not treated as surviving for penal consequences.

Conclusion: Penalty under section 12(5)(iii) was not leviable.

Final Conclusion: The penalty order was unsustainable and the relief granted by the first appellate authority was restored in favour of the assessee.

Ratio Decidendi: Where an assessee files a revised return correcting an inadvertent omission before completion of assessment, penalty for filing an incorrect or incomplete return is not exigible under section 12(5)(iii).

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