1974 (8) TMI 91

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der was made on 2nd August, 1969, on a taxable turnover of Rs. 4,28,540. Proceedings were initiated for bringing to assessment certain escaped turnover under section 12-A of the Act in the course of which the Additional Commercial Tax Officer issued a notice dated 18th January, 1971, purporting to be one under section 12(4) of the Act, to show cause as to why a penalty of Rs. 2,894.40 should not be levied for the concealment of a turnover of Rs. 1,28,640.00. To the said notice, the assessee filed his objections. The Commercial Tax Officer made an order of assessment under section 12-A of the Act on 3rd February, 1971, by which he levied a penalty of Rs. 2,894.40. The assessee did not prefer any appeal against the order of reassessment, but ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n of commission sales as per your statement, the total sales on commission basis amounted to Rs. 5,01,070.26 as against Rs. 3,72,430.26. Thus, you had concealed a turnover of Rs. 1,28,640.00 being the sales of foodgrains on commission basis taxable at 1 1/2 per cent involving a tax of Rs. 1,929.60. From this it could be inferred that you have suppressed the turnover of Rs. 1,28,640.00 under commission sales deliberately and wilfully to avoid payment of tax on such turnover. In the circumstances, I propose to levy penalty of Rs. 2,894.40 for the concealment of a turnover of Rs. 1,28,640.00 taxable at 1½ per cent involving a tax of Rs. 1,929.60 as provided under section 12(4) of the M.S.T. Act, 1957. Therefore, you are required to file....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that the order imposing penalty under section 12(4) of the Act should form part of the assessment order. The same reasoning also applies to the case of imposition of penalty under clause (1-A) of section 12-A of the Act. The order imposing penalty should be made simultaneously with the assessment under section 12-A. In the instant case, the notice dated 18th January, 1971, cannot be construed as a notice to show cause under clause (1-A) of section 12-A of the Act. Mr. Chandrakantaraj Urs, Senior High Court Government Advocate, submitted that since the notice purporting to be under section 12(4) of the Act was sent along with the notice under section 12-A, the former notice has to be construed as one issued under clause (1-A) of section 12-....