Penalty for non-filing of returns sustained where the technical breach plea was not raised below and leniency was already granted.

Penalty under Section 45A of the Kerala General Sales Tax Act for failure to file returns and remit tax was sustained where the assessee had not raised, before the assessing, appellate, or revisional authorities, the plea that the default was a technical breach or due to reasons beyond its control. The record showed no objections to the penalty proposal before the assessing authority, and the grounds later urged in appeal were outside the issues actually raised below. As the penalty had already been reduced from double the tax to the tax amount, and penal interest had been waived, no further interference was warranted.

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Issues: Whether penalty imposed for failure to file returns and remit tax under Section 45A of the Kerala General Sales Tax Act was liable to be interfered with on the ground that the default was a technical breach or was caused by reasons beyond the assessee's control.

Analysis: The appellant had not filed returns or remitted tax for the relevant periods, and proceedings under Section 45A were initiated. The plea that the default was due to reasons beyond control was not shown to have been raised before the assessing, appellate, or revisional authorities in the form now urged. The record showed that the appellant did not file objections to the proposal before the assessing authority, and the grounds subsequently pressed in appeal were outside the issues actually raised below. The penalty had already been reduced from double the tax to the tax amount, and the learned Single Judge had also waived penal interest, reflecting substantial leniency.

Conclusion: The challenge to the penalty was rejected and the penalty was sustained in favour of the Revenue.

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