TMI Blog2002 (4) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... ty was reduced by the Deputy Commissioner of Commercial Taxes to Rs. 7,31,800 and Rs. 12,40,000 respectively. On further revision by the petitioner, the reduced penalty was sustained by the Commissioner of Commercial Taxes, and the original petition is against the said order. 2.. I have heard counsel for the petitioner, Sri. T.M. Sreedharan, and the Government Pleader for the respondents. The contention of the petitioner is that it is a roller flour mill engaged in manufacture of various wheat products, such as atta, suji, etc., from wheat purchased by it. According to the petitioner, since wheat purchased has suffered tax, the petitioner's impression was that the products made out of wheat, namely, atta, suji, etc., which are different f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 1, wherein the Supreme Court held that in order to appreciate as to whether a return filed is true or correct, the law as on the date of filing of the return has to be considered and if the return with reference to the law as prevailing on the date of commission of offence, that is the date of filing of the return, supports the claim taken in the return, then the return cannot be held to be a wrong return. Counsel submitted that the Supreme Court decision came only on September 1, 1993 and by that time returns were filed for the years 1991-92 and 1992-93 based on the law declared by various High Courts holding that the products of the petitioner are not manufactured products of wheat attracting sales tax. The Government Pleader on the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court only interpreted the statute and declared the law. The decision of the Supreme Court does not partake of the character of legislation. All that the Supreme Court did was to reverse the decision of various High Courts and held that suji, atta, etc., are manufactured products of wheat which attract tax. By virtue of the decision of the Supreme Court in Rajasthan Flour Mills' case [1993] 91 STC 408 dated September 1, 1993 admittedly the petitioner is liable to pay tax, whereas in the original returns filed for the years 1991-92 and 1992-93 the petitioner claimed exemption. The petitioner cannot be blamed for claiming exemption in the original returns filed on these products on the basis of the decisions of various High Courts holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry payment of tax as a defence against levy of penalty. Since the petitioner did not file revised returns declaring the turnover on the product taxable, in the light of the decision of the Supreme Court referred to above, after the pronouncement of the judgment by the Supreme Court, I find the lower authorities are justified in holding that the petitioner filed incorrect and untrue returns attracting penalty under section 45A(d) of the Act. If the petitioner had any bona fides, the petitioner would have filed revised returns soon after the decision of the Supreme Court. Even when the returns originally filed remained wrong and incorrect, which the petitioner was well aware, the petitioner started remitting tax conveniently from 1993 to 1996 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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