TMI Blog2004 (2) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of taxation in respect of cardamom was shifted to the point of last purchase. However, the petitioners failed to report the last purchase turnover of cardamom in the monthly returns and also to pay the tax thereon. They only furnished the turnover of cardamom sold to local consumers, but, only in response to a notice, they disclosed the turnover of cardamom at Rs. 18,73,621 in the form of a statement before the assessing officer. Tax was paid by the petitioners only after the final assessment order was passed. A notice was issued to the petitioners calling for objections as to why a penalty at 150 per cent on the tax due, surcharge at 10 per cent and additional tax, should not be levied. The petitioner submitted objections, stating that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the tax dues thereon even at the time of filing statement, levy of penalty is fully justified. 5.. The petitioner thereafter filed an appeal before the fourth respondent/Tamil Nadu Taxation Special Tribunal, under section 37 of the Act, who dismissed the appeal, by holding that the question of bona fide or wilfulness will not be a factor to get over the incomplete returns. The fourth respondent also held that even if the statement filed at the time of final assessment is accepted as "revised returns", it cannot be a "complete return" since there was no proof of payment of tax due accompanied the return. 6.. The prayer that is sought for in this writ petition is for the issuance of a writ of certiorari to call for the records on the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 157 [App.] (State of Tamil Nadu v. Indian Silk Traders) to the effect that the facts of each case have to be carefully analysed before coming to the conclusion whether a particular return is incorrect or incomplete and whether the assessee returned an incomplete or incorrect return, more with a view to postpone the tax legitimately due to the Government, or under a bona fide belief that his return was in accordance with law. 10.. Coming to the present case, the petitioners claim to be reputed and established dealers in cardamom, chillies, etc., for nearly four decades. They failed to disclose the details in the monthly returns. It is rather difficult to accept that such mistakes had crept in bona fide, and the intention was obvious, viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty is fully justified. 12.. The tax due is indicated as Rs. 56,209 and the additional tax is Rs. 23,420. Learned counsel appearing for the petitioner contended that as per the then provisions of the Tamil Nadu Additional Sales Tax Act, no penalty can be imposed on this additional tax. Learned counsel for the State fairly concedes that the said claim of the petitioner is correct. That being so, the levy of penalty on additional tax has to be held as illegal. 13.. The next question is as to whether levy of penalty on the surcharge is legal and proper? Learned counsel, appearing for the Revenue, would draw the attention of this Court to a ruling of this Court reported in [1985] 58 STC 143 [Deputy Commissioner (C.T.) v. M. Murugesan and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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