1967 (3) TMI 92

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....usiness by a Special Deputy Commercial Tax Officer (Detection), Thanjavur, along with a certain other officer on 8th October, 1959, and certain secret accounts in Gujarati language were recovered. They are claimed to relate to the years 1954-55 to 1959-60 and transactions relating to the assessee's business. On a scrutiny of the accounts a further turnover of Rs. 5,63,053.42 was discovered for the year in question, and eventually there was an assessment of a net turnover of Rs. 3,86,099.26. At the same time a turnover of Rs. 1,76,954.16 was charged to tax under the provisions of the Central Sales Tax Act. On the view that the assessee failed to disclose the turnover so brought to tax a penalty of Rs. 18,580.17 was levied under section 9(3) ....

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....x Act, like the tax on turnover under that Act, there will be no liability to penalty only by reason of the provisions of the Madras General Sales Tax Act, 1959. In other words, section 12(3) of the Madras General Sales Tax Act is not adopted for purposes of sub-section (3) of section 9. The only provision in the Central Sales Tax Act providing for penalty is section 10 and that does not cover a penalty of the type contemplated by section 12(3) of the Madras General Sales Tax Act, 1959. In our view, therefore, the penalty levied in this case cannot be held to be valid. On the other point too, as we said, the assessee is entitled to succeed. There is clearly no provision in the Madras General Sales Tax Act, 1939, providing for penalty as d....