Sales tax penalty for concealment fails when turnover is disclosed, revised return is filed, and tax with interest is paid before proceedings.

Penalty under Section 15-A(1)(c) of the U.P. Sales Tax Act was not sustainable where the assessee had disclosed the turnover in its books, filed a revised return, and paid the tax with interest before assessment and before penalty proceedings began. The provision applies only to concealment of turnover or deliberate furnishing of inaccurate particulars, and those ingredients were not established on the facts. Once the revised return was accepted in assessment, the legal basis for penalty disappeared. The penalty was therefore liable to be set aside in favour of the assessee.

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Issues: Whether penalty under Section 15-A(1)(c) of the U.P. Sales Tax Act was leviable when the assessee had filed a revised return disclosing the turnover, had shown the sales in its books of account, and had deposited tax with interest before initiation of penalty proceedings.

Analysis: The provision applies only where the assessee has concealed the particulars of turnover or deliberately furnished inaccurate particulars of such turnover. The disclosed facts showed that the turnover of mustard oil was reflected in the books of account, a revised return was filed, and tax with interest was paid before the assessment order and before any penalty proceedings were initiated. Once the revised return was accepted in assessment, the necessary ingredients for penalty were not established.

Conclusion: Penalty under Section 15-A(1)(c) was not justified and was rightly liable to be set aside in favour of the assessee.

Ratio Decidendi: Penalty for concealment or furnishing inaccurate particulars cannot be sustained where the turnover is disclosed in the books, a revised return is filed and accepted, and tax with interest is paid before penalty proceedings commence.

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