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of <h1>Sales Tax Officer's Improper Tax Levy Upheld, Emphasizing Importance of Legal Compliance and Revenue Protection</h1> The Court upheld disciplinary action against a Sales Tax Officer for improperly levying tax and penalty on impounded goods, resulting in revenue loss. The ... Case against sales tax officer (petitioner) - disciplinary proceedings for wrong decisions - allegation of undue favor of assessee - The stand of the petitioner was that 2.5 times of the tax was the maximum penalty which could be levied and thus a wrong discharge of his quasi judicial functions could not be made the subject matter of a domestic inquiry. As regards the tax levied, he stated that since the dealer told him that the end use of the wax was manufacturing candles, he levied the correct tax. Held that:- In the instant case there is no charge of any oblique motive against the petitioner. - As we read the evidence in light of the charge and the Statement of Imputation, we concur with the view taken by the Tribunal that it is a case of gross negligence. We highlight. It is not a case where the stand of the department is that after considering the relevant material a wrong assessment was made. Though the counsel (of the petitioner) did not expressly concede, but tacitly admitted that the petitioner gullibly accepted what fell from the mouth of the owner of the goods. - petition dismissed. Issues: Allegation of improper tax levy and penalty imposition by Sales Tax Officer leading to revenue loss; Disciplinary action against Sales Tax Officer for alleged negligence and dereliction of duty.Issue 1: Allegation of improper tax levy and penalty impositionThe case involved allegations against the Sales Tax Officer for improperly levying tax and penalty on goods impounded, causing revenue loss. The petitioner impounded a truck carrying wax intended for sale in Delhi but released it after levying a lower tax and penalty than required by law. The charge was that the petitioner failed to tax the goods at the correct rate of 20%, resulting in a revenue loss of Rs. 1,33,128. The petitioner defended his actions by claiming that he levied the correct tax based on information provided by the dealer regarding the end use of the wax for manufacturing candles.Issue 2: Disciplinary action against Sales Tax OfficerThe Inquiry Officer found the petitioner guilty of negligence and dereliction of duty for not imposing the correct tax and penalty on the impounded goods. The Inquiry Officer highlighted discrepancies in the petitioner's actions, such as miscalculating the tax amount and failing to provide sufficient justification for his decisions. Subsequently, a penalty reducing the petitioner's pay scale for two years was imposed. Despite the petitioner's argument that disciplinary proceedings cannot be initiated for wrong decisions in quasi-judicial functions without proof of malice, the Central Administrative Tribunal upheld the penalty.Analysis:In analyzing the case, the Court emphasized that disciplinary action was not based on the petitioner's misinterpretation of the law but on his failure to consider crucial facts leading to revenue loss. The Court agreed with the Tribunal's view that the petitioner's actions amounted to gross negligence, as he did not verify the intended use of the wax for candle manufacturing before releasing the goods. The Court highlighted that the charge against the petitioner was not about a wrong assessment but about neglecting to ensure proper tax imposition, resulting in financial loss to the government.The Court also noted that the petitioner's reliance on information provided by the dealer without proper verification was a critical factor in the case. Despite arguments about the decision-making process, the Court emphasized that the focus was on the petitioner's failure to follow the law and protect government revenue. Ultimately, the Court dismissed the writ petition, upholding the disciplinary action against the Sales Tax Officer without imposing any costs.In conclusion, the judgment centered on the Sales Tax Officer's failure to levy the correct tax and penalty on impounded goods, leading to revenue loss. The Court upheld the disciplinary action based on the officer's negligence and lack of diligence in ensuring compliance with tax laws, emphasizing the importance of proper verification and adherence to legal requirements in such cases.
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