TMI Blog1983 (3) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... Narsaraopet, that a certain quantity claimed to have been purchased by the petitioner from one Kotha Venkateswara Rao of Rajahmundry, was a bogus claim and that the petitioner had merely obtained a bill without purchasing the goods from such person. The amount covered by the bill was Rs. 31,934.38. Since the petitioner could not satisfy the Commercial Tax Officer about the genuineness of the said purchase (claimed to have been made by it from Kotha Venkateswara Rao of Rajahmundry), the Commercial Tax Officer determined the net turnover at Rs. 35,127.81 (adding 5 per cent towards profit) by his provisional assessment order. In the annual return, however, the petitioner did not persist in its claim for exemption for the said amount of turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w that "though the section contemplates production of a false bill to claim exemption, we are inclined to hold that actual production in the literal sense of bringing forward for inspection or consideration may not be necessary. It is enough if on the basis of a false bill a dealer claims exemption in respect of a transaction covered by such false bill..........". We find it difficult to accept this view. Sub-section (2) of section 7-A reads as follows: "7-A. (1) .................... (2) Where a dealer knowingly issues or produces a false bill, voucher, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sess the escaped turnover, but also to levy penalty as provided in sub-section (8). Sub-section (8) provides for levy of penalty. It reads thus: "(8) The penalty leviable under sub-section (2), sub-section (3) or subsection (4) shall not exceed- (a) five times the tax, or the fee, due in a case where the assessing authority is satisfied that the failure of the dealer to disclose the whole or part of the turnover or any other particulars correctly, or to submit the return before the prescribed date, was wilful; and (b) one half of the tax or the fee, due in a case where such failure was not wilful: Provided that where such failure occurred due to a bona fide mistake on the part of the dealer, no such penalty shall be levied..." A rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper to construe the said declaration appended to the return as a declaration within the meaning of section 7-A(2). Doing so would amount to dividing the return (i.e., a false return) into two parts, one punishable under section 14 and the other under section 7-A(2)-an uncalled for distinction. We are equally of the opinion that a return would not fall within the expression "other document" in sub-section (2) of section 7-A, a fact which becomes evident from the distinctive scheme of the two provisions. Penalty under section 7-A(2) can be levied for the mere issuance or production of a false bill, voucher or declaration, etc., whether before finalising the assessment, or thereafter; whereas penalty under sub-section (8) of section 14 can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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