sources. Based on the above materials, the Assessing Authority had estimated the deemed sale value liable to tax at Rs.15,83,190/- and assessed the same to tax at appropriate rates. He had also levied a penalty of Rs.1,97,534/- under Section 12 (3)(a) of the Tamil Nadu General Sales Tax Act. On appeal, the first appellate authority had confirmed the assessment made, but had deleted the penalty on the ground that the Respondent had filed returns before assessment and hence penalty is not warranted. We find that the stand taken by the first appellate authority is not correct. But for inspection made by the Department, the liability to tax would not have come to light. Further there was no voluntary filing of return or payment of tax and that the filing of return subsequent to inspection by the Department could not be considered as in compliance of the provisions of the Act. The assessment falls under Section 12(2) of the Tamil Nadu General Sales Tax Act and the penalty levied under Section 12(3)(a) of the Tamil Nadu General Sales Tax Act is found to be in order. We therefore hold that the stand taken by the learned Appellate Assistant Commissioner in deleting the levy of penalty is incorrect, and in turn we restore the order of the Assessing Authority as sought for by the State. In the light of the aforesaid observations, we restore the order of the Assessing Officer for the levy of penalty portion of Rs.1,97,534/- under Section 12(3)(a) of the Tamil Nadu General Sales Tax Act and order accordingly.
