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The National Insulated Cable Co. of India Ltd. Vs. the State of Madras - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case Number Tax Case (Revision) No. 296 of 1965
Judge
Reported in[1968]22STC475(Mad)
AppellantThe National Insulated Cable Co. of India Ltd.
RespondentThe State of Madras
Appellant Advocate M. Ranganatha Sastri, Adv.
Respondent Advocate The Assistant Government Pleader
DispositionPetition allowed
Cases ReferredBata Shoe Company (P.) Ltd. v. Joint Commercial Tax Officer
Excerpt:
- - 1. the order imposing penalty is clearly wrong and in excess of the jurisdiction under section 12(3) of the madras general sales tax act, 1959. the return was no doubt filed belatedly. once it is accepted and an assessment made on that basis without invoking best judgment, section 12 does not authorise the revenue to levy penalty.veeraswami, j.1. the order imposing penalty is clearly wrong and in excess of the jurisdiction under section 12(3) of the madras general sales tax act, 1959. the return was no doubt filed belatedly. but it was accepted. once it is accepted and an assessment made on that basis without invoking best judgment, section 12 does not authorise the revenue to levy penalty. this principle has been laid down by this court in bata shoe company (p.) ltd. v. joint commercial tax officer [1968] 21 s.t.c. 135 which applies squarely to this case. the tax case is allowed. no costs.
Judgment:

Veeraswami, J.

1. The order imposing penalty is clearly wrong and in excess of the jurisdiction under Section 12(3) of the Madras General Sales Tax Act, 1959. The return was no doubt filed belatedly. But it was accepted. Once it is accepted and an assessment made on that basis without invoking best judgment, Section 12 does not authorise the revenue to levy penalty. This principle has been laid down by this Court in Bata Shoe Company (P.) Ltd. v. Joint Commercial Tax Officer [1968] 21 S.T.C. 135 which applies squarely to this case. The tax case is allowed. No costs.


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