Taxability of REP licence transfers and mandatory penalty on unpaid tax differential upheld under sales tax law.

Transfer of REP licences was treated as taxable goods under the sales tax enactments, and penalty under section 12(3)(b) followed on the tax differential. The amended penalty provision removed the need to prove wilful non-disclosure and limited the assessing authority's discretion, so once tax remained unpaid despite opportunity before final assessment, penalty became leviable. No material was shown to justify non-payment on the taxable turnover, and the Revenue's position was sustained.

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Issues: Whether the transfer of REP licences was taxable as goods and whether penalty under section 12(3)(b) was leviable for non-payment of tax on the turnover.

Analysis: The taxable character of REP licences had already been settled as goods within the meaning of the sales tax enactments. The assessment was made after the law on taxability had been clarified, and the assessee had an opportunity to pay tax before final assessment. The amended penalty provision removed the element of wilful non-disclosure and curtailed the assessing authority's discretion, so that where there was a difference between tax paid and tax assessed, penalty followed under section 12(3)(b). No material was shown to justify non-payment of tax on the turnover before assessment.

Conclusion: The levy of penalty was upheld and the revision was dismissed.

Final Conclusion: The assessee failed to establish any legal or factual basis to avoid penalty on the taxable turnover from transfer of REP licences, and the Revenue's position was sustained.

Ratio Decidendi: Where taxable turnover is not paid despite opportunity and the statute mandates penalty on the tax differential without requiring wilful non-disclosure, penalty is leviable.

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