BHAGWATI, J. :- Two questions of law are submitted for our opinion in this reference; one raises the issue as to which is the proper entry of Schedule B to the Bombay Sales Tax Act, 1953 under which fans are liable to be taxed, entry 52 or the residuary entry 80 and the other relates to the validity of the imposition of penalty on the assessee under S. 16(4) of the Act. In order to appreciate the contentions bearing on these questions, it is necessary to state briefly a few facts giving rise to the reference.

2. At all material times the assessee was a registered dealer under the provisions of the Act and carried on business as a dealer in electric fans and sewing machines. In the course of the assessment of the assessee to sales tax for the assessment period 1st April 1957 to 31st March 1958, the question arose whether the sales of electric fans made by the assessee were taxable under Entry 52 of Sch. B or under Entry 80 of Schedule B. The revenue claimed that electric fans were domestic electrical appliances within the meaning of Entry 52 of Schedule B and the sales of electric fans were, therefore, taxable under that entry whereas the assessee contended that electric fan