Statutory penalty for non-compliance with information requisition under sales tax law upheld against a clearing agent.

A clearing or forwarding agent required to furnish particulars under section 36-A of the M.P. General Sales Tax Act, 1958 is subject to statutory penalty for non-compliance. The Court treated section 36-A as a regulatory provision supporting tax enforcement and preventing evasion, distinct from the Commissioner's information-calling power under section 36. It held that failure to comply with a requisition for information attracts the penal consequence under section 36-A(2), and the assessing authority was competent to impose the penalty. The question was answered in favour of the Revenue and against the assessee.

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Issues: Whether the Tribunal was justified in holding that the assessee was liable as a clearing or forwarding agent under section 36-A of the M.P. General Sales Tax Act, 1958 and in sustaining the penalty imposed under section 36-A(2).

Analysis: Section 36 empowers the Commissioner to call for information in specified cases, while section 36-A separately requires banks and clearing or forwarding agents, and persons handling documents of title to goods or transporting goods, to furnish particulars when called upon. The Court held that the provision operates as a regulatory mechanism to aid tax enforcement and prevent evasion. On failure to comply with the requisition for information, the penal consequence under section 36-A(2) is attracted, and the assessing authority had competence to impose penalty for such default.

Conclusion: The penalty was within the competence of the assessing authority, and the question was answered in favour of the Revenue and against the assessee.

Ratio Decidendi: A clearing or forwarding agent required to furnish information under section 36-A of the M.P. General Sales Tax Act, 1958 is liable to statutory penalty under section 36-A(2) for non-compliance, as the provision is a valid regulatory measure to enforce tax administration.

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