9911796707
TMI Blog1996 (6) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... sed from Sri Venkateswara Trading Company, Karimnagar. Along with A2 return the petitioner filed form E return claiming exemption. The Commercial Tax Officer found that the said Sri Venkateswara Trading Company was a non-existent company. While rejecting the exemption and making assessment, he had also proceeded against the petitioner for levying penalty under section 7-A(2) of the Act. A show cause notice was issued to the petitioner calling upon it to explain as to why penalty should not be levied under section 7-A(2) of the Act but no reply was given by the petitioner. The assessing authority, by his order dated November 23, 1981, levied penalty of Rs. 8,673. Aggrieved by the said order of the assessing authority, the petitioner filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of Rs. 95,575. The Tribunal, however, rejected the contention of the State representative that form E is not a declaration and held that it is a declaration as contemplated under section 7-A(2). It also noted the contention that the bills filed by the petitioner before the assessing authority, were returned after perusal and that the bills are not on record and observed that even if it was held that the appellant had not produced the bills of purchase in support of claim for exemption, it was clear that it gave a declaration in form E in support of the claim for exemption and that form E was a declaration as contemplated in section 7-A(2). The appellate Tribunal also rejected the contention that it was not established that the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty under this section, the assessing authority shall give to the dealer an opportunity of making representation against the levy of such penalty. From a reading of the abovenoted section it is clear that where the 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 or is liable to be taxed at a reduced rate, on detecting such issuing of bill or voucher or its production, the assessing authority has to direct the dealer issuing or producing such document to pay as penalty three times the tax due in respect of such transaction if it was a first such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch false bill....'. We find it difficult to accept this view......". Thus it is clear that for purposes of the abovesaid provision actual filing of the bill or voucher is necessary Construing section 7-A(2), the Division bench has observed that it punishes a dealer who 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 or is liable to be taxed at a reduced rate. It opined that the expression "false declaration" used in section 7-A(2), among other things, refers to a declaration as such which is prescribed either by the Rules or can otherwise be called a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any claim for refund of sales tax by the dealerassessee that a transaction of sale or purchase effected by him, is not liable to be taxed. Therefore, in our view, whatever statement of facts is made therein (form E) or in a separate statement duly signed as a supplement or part thereof, would amount to a "declaration" within the meaning of section 7-A(2). In this view of the matter we cannot accept the contention that form E is only a form of return and that the separate statement filed duly signed by the dealer forms part of form E and cannot be treated as a declaration or statement. Even assuming that form E is merely a form of return which does not fall under "declaration or document", the petitioner cannot escape the penalty as a fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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