Penalty for disclosed turnover cannot stand absent specific concealment under the Tamil Nadu sales tax law.

Penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 was held inapplicable where the assessed turnover was taken from the assessee's books and there was no specific concealment. The statutory explanation excludes penalty where additions are made without reference to concealment, and the dispute concerned only the tax rate applicable to disclosed turnover, not suppression of sales. On those facts, the penal provision could not be invoked, so the penalty was deleted while the substantive assessment remained undisturbed.

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Issues: Whether penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 could be levied when the turnover was disclosed in the books of accounts and there was no specific concealment.

Analysis: The turnover adopted in assessment was drawn from the assessee's books of accounts. The statutory explanation to Section 12(3)(b) excludes, for the purpose of penalty, turnover representing additions made without reference to any specific concealment and turnover estimated with reference to concealment. On the facts found, the case did not involve suppression of turnover, but only a dispute about the rate of tax applicable to the disclosed turnover. In such circumstances, the penal provision could not be invoked.

Conclusion: Penalty under Section 12(3)(b) was not exigible and the finding sustaining it was set aside, in favour of the assessee.

Final Conclusion: The revision succeeded by deleting the penalty, while leaving the substantive assessment undisturbed.

Ratio Decidendi: Penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 is not attracted where the assessed turnover is based on disclosed accounts and there is no specific concealment of turnover.

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