TMI Blog2011 (8) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... P4) under section 13 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (52 of 1976) (hereinafter referred to as, the Act ) read with section 69(1) of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (5 of 1995) passed by respondent No. 1, Assistant Commercial Tax Officer, Katni, has come to this court by filing a writ petition under articles 226 and 227 of the Constitution of India. Briefly stated the facts of the case are that the petitioner-M/s. Ankit Lime Minerals, a manufacturer of limestone, was assessed for tax by respondent No. 1 for the period April 1, 1999 to March 31, 2000 by assessment order dated November 28, 2002. The tax of ₹ 16,125 with interest of ₹ 11,610 was assessed under. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that it had submitted the false return and concealed the amount of purchases for the period April 1, 1999 to March 31, 2000, and thus it had not deposited the required tax in time. We have heard learned counsel for the parties. It is not the case of respondents that the petitioner had submitted the false particulars in its return. On the other hand, it is clear from the impugned order that the petitioner had submitted required details and claimed exemption by raising a legal plea. The authorities imposed the penalty on the ground that it claimed exemption which amounts to deliberate non-payment of the tax and filing false return. We have perused the record and penalty order dated September 9, 2003 passed in revision by the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return or returns for such period, the Commissioner or the appellate or the revisional authority as the case may be, may initiate proceeding separately for imposition of penalty under this section. (2) The proceeding under sub-section (1) shall be initiated by the Commissioner or the appellate or revisional authority as the case may be, by issue of a notice in the prescribed form for giving the dealer an opportunity of being heard. On hearing the dealer, the Commissioner or the appellate or the revisional authority as the case may be, shall pass an order not later than one calendar year from the date of initiation of such proceeding, or within such further time as allowed by the State Government, directing the dealer that, he shall in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on the goods. Taking a legal plea that the goods are not taxable would not make the return a false return. It appears that the petitioner had not submitted the return with guilty mind because it had the bona fide belief that the entire goods were not taxable. Therefore, the penalty cannot be imposed by condemning the return as a false return. In the case of Hindustan Steel Limited v. State of Orissa [1970] 25 STC 211 (SC); [1972] 83 ITR 26 (SC), the Supreme Court has held that an order imposing penalty for failure to carry out a statutory obligation is the result of a quasi criminal proceeding, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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