Nalini V. Patil vs The Commissioner of Commercial Taxes, Bangalore and Another

V.K. Singhal, J.-This appeal is against the order of the Additional Commissioner of Commercial Taxes dated 24-9-1996 passed under Section 22-A of the Karnataka Sales Tax Act. In a vehicle bearing Registration No. KA-19-429 on 16-3-1995 it was found by the check post authorities that the goods carrying the document for 99 bags of zeera and 74 bags of methi. But on verification it was found that there were 74 bags of mustard seed and 99 bags of zeera. The dispute was therefore in respect of 74 bags of mustard seed for which the document of methi was shown. Penalty of Rs. 11,000/- was levied. As Deputy Commissioner of Commercial Taxes (Appeals) found that it was a mistake only and the price of the methi and mustard are same and it was not intentional to evade the tax, the penalty was set aside. The revising authority has found that the said order was erroneous and is prejudicial to the interest of the revenue, inasmuch as the Appellate Authority has committed an error in setting aside the penalty.

Arguments of both the learned Counsels for the parties heard.

It has not come on record as to how the interest of the revenue was affected in passing the order invoking the revisional jurisdiction by the revising authority. There were documents containing correct quantity of the goods and also the value of the mustard. The mistake is committed by the seller, which is stated to have been subsequently rectified. Further, the interest of the revenue cannot be affected as alleged as the rate of sales tax of methi was not less than the mustard seeds. In these circumstances, the order passed by the revising authority is set aside and the appeal is allowed.