1996 (3) TMI 507

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....on of this Court arising out of its order dated February 20, 1987 passed in Appeal No. 332-PBR of 1985: "1. Whether, on the facts and in the circumstances of the case, where the assessee had filed all the quarterly returns, the Tribunal was justified in law in holding that the penalty imposed on the assessee under section 17(3)(c)(iii) of the M.P. General Sales Tax Act, 1958 read with section 9(2) of the Central Sales Tax Act, 1956 and further that the penalty imposed under section 17(3)(b)(ii) read with section 9(2) of the said Act for late filing of returns and late payment of tax according to such returns was in accordance with the said provision? 2.. If the answer to the question No. 1, above is in the affirmative, whether the pen....

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....xure "B" forming part of the statement of the case). 3.. Dissatisfied with the decision of the Tribunal, the applicant-assessee moved reference application requiring the Tribunal to state the case and refer as many as five questions for the opinion of this Court. The Tribunal by its order dated September 14, 1987 has referred the aforesaid two questions only.   4.. We have heard Shri G.M. Chafekar, learned Senior Counsel appearing with Smt. Meena Chafekar for the applicant-assessee and Shri Surjeet Singh, learned Government Advocate for the non-applicant-State. The main contention of Shri Chafekar is that the Tribunal could not have taken recourse to both the clauses (b) and (c) of sub-section (3) of section 17 of the State Act a....

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....ault, subject to a maximum of five hundred rupees in each case; (ii) in the cases referred to in clause (b), in addition to the amount of tax, if any, payable by him a sum equal to one per cent of the tax for every month or part thereof for the first six months and 1.5 per cent for the next six months of the first year during which the default continued and thereafter 2 per cent of the tax for every month or part thereof during which the default continued but not exceeding in aggregate 25 per cent of the tax which may be assessed on him under section 18 and where no tax is payable a sum not exceeding one hundred rupees; and (iii) in the case referred to in clause (c), a sum not less than 15 per cent and not exceeding 35 per cent of th....

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....ing such an imposition is required to be absolutely clear as to: (i) the lapse committed, i.e., evident breach of law;   (ii) the provision to be applied in the event of adjudged lapse;   (iii) the quantum of penalty permissible by the provision and proportionate to the breach of law. 9.. The element of mens rea is yet another aspect. In [1984] 55 STC 350 (MP) (Govindram Chatramal v. Commissioner of Sales Tax, Madhya Pradesh), it is ruled that bona fide doubt in the mind of assessee is sufficient to earn immunity from rigour of penalty. Reference was answered in favour of the assessee by this Court in M.C.C. No. 295 of 1986 (Commissioner of Sales Tax v. Malwa Trading Co. Nagda) and M.C.C. No. 286 of 1986 (Commissioner ....