1967 (6) TMI 42

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....eputy Commissioner, in exercise of his powers under section 32 of the Madras General Sales Tax Act, 1959, has jurisdiction to make an order levying penalty for the first time on the assessee where the assessing authority in its original order of assessment failed to make any observation on penalty. It is not in dispute that the assessing authority added Rs. 30,879.64 to the turnover reported, and ....

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....essing authority to levy penalty, was interpreted by this Court in State of Madras v. Ramulu Naidu[1965] 16 S.T.C. 865., where it was held that the penalty contemplated by the sub-section depended on and followed a finding as to the incompleteness or incorrectness of the return submitted, and formed part of the proceedings resulting in the best judgment assessment, and that, therefore, what was co....

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....proceeding recorded by the appropriate authority, and, therefore, section 32(1) will be inapplicable. We are not persuaded to accept the argument. As we said, the assessing authority in its notice proposing addition of turnover, called upon the assessee to show cause why a penalty should not be levied. It must be taken, therefore, that the assessing authority must have applied its mind to the ques....

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....he assessing authority had applied its mind but did not think it necessary to levy a penalty." That would amount to an order which may fall well within the phrase "an order passed" in section 32(1). If there is an order passed within the meaning of the sub-section, then the sweep of the Deputy Commissioner's power in that sub-section appears to be very wide and may comprehend the power to revis....