Commissioner, Sales Tax vs British Paints India Ltd.

Dev Kant TrivedI, J.—Heard.

The present revision has been preferred by the Commissioner, Sales Tax, Uttar Pradesh, Lucknow, challenging the order dated November 18, 1991 passed by a division Bench of Sales Tax Tribunal, Lucknow, whereby the appeal of the opposite party was allowed and the penalty imposed u/s 15-A(1)(o) of the U.P. Sales Tax Act, 1948 imposed by the assessing authority as affirmed by the Deputy Commissioner (Appeals), Sales Tax, Lucknow, was set aside.

The case of the revisionist is that in taxation statutes the role of mens rea does not come into play and, therefore, the Tribunal was not justified in quashing the order regarding imposition of penalty on the opposite party.

The learned counsel for the opposite party, however, says that it is not a case including mens rea rather it is a case in which the State Government made an enactment on October 5, 1982 retrospective in effect from September 27, 1979 and, therefore, the opposite party could not have anticipated that the import of any goods will become illegal from back date and the opposite party will become liable not only to pay tax but also to pay penalty. It is urged on behalf of the opposite party that they themselves submitted all the details regarding imports made during financial year 1979-80 and since during that period there was no necessity for using form XXXI for importing any goods from outside the State, therefore, they were not liable to pay penalty when the amendments to the Act were given retrospective effect.

There seems substantial justification in what the learned counsel for the opposite party has urged. No one could have anticipated prior to October 5, 1982 that there will be some enactment effective from September 27, 1979. In the circumstances the Tribunal has taken wholly correct view and has rightly set aside the penalty imposed by the assessing authority as affirmed by the Deputy Commissioner (Appeals), Sales Tax, Lucknow.

There is no force in the present revision and the revision is, accordingly, dismissed. No order as to costs.