Penalty for short-payment of additional sales tax was held not...

Penalty for short-payment of additional sales tax was held not to be attracted where the dispute concerned only the applicable rate and there was no suppression or variation in turnover. Because the turnover returned and the turnover assessed were identical, the case did not amount to an incorrect or incomplete return within the meaning of the penalty provision. The Court also applied strict construction to penalty statutes and held that Section 12(3)(b) did not authorise penalty merely because tax was paid at a lower percentage. The appellate authority's deletion of penalty, affirmed by the Tribunal, was upheld and the State's revision was dismissed.