1981 (9) TMI 256

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....e Act, the Commissioner of Sales Tax has filed this revision. Before deciding this question it is necessary to notice the facts and findings recorded by the revising authority. The assessee is a manufacturer of straw board and sand paper. In the assessment year 1974-75 on the sales effected by it, it realised tax at the rate of 3 1/2 per cent and deposited the same along with its quarterly return.....

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....t, provided in the Act. Against this order both the assessee and the Commissioner of Sales Tax filed appeals which were decided by the Sales Tax Tribunal, Bench (1), Saharanpur. The Tribunal held that the failure on the part of the assessee to deposit the tax due was not intentional; rather it was not aware that the rate of tax had been enhanced from 3 1/2 per cent to 7 per cent from 1st December,....

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.... Once an assessee is found guilty and the assessing authority is satisfied that the dealer has contravened any of the sub-clauses then it may impose penalty as provided in the Act. But it is not automatic. It is discretionary. The principle is now well-settled by the Honourable Supreme Court in Hindustan Steel Ltd. v. State of Orissa [1970] 25 STC 211 (SC) which was followed by this Court in Jullu....

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.... but also in ignorance of law. There could be no better proof of bona fide than in this case where the assessee had to pay additional demand along with interest from its own pocket. In fact, on facts found the Tribunal should not have reduced the penalty but should have discharged the notice as the non-deposit of tax due was not without reasonable cause. It was a fit case in which it could be h....