D.N. Patel, J.

1. Here, in this case questions involved are:

Whether penalty can be levied, on the amount for which claim of assessee was not allowed, by Assessing Authority?

Or Whether rejection of claim of an assessee is a concealment of turnover?

Or Whether rejection of claim of an assessee, tantamounts to supply of incorrect statement of turnover or can be said that to that extent, incorrect particulars of sales or purchases were supplied by the assessee?

Or Whether penalty can be imposed, upon the assessee, for his rejection of claim, treating that, to that extent, there was incorrect supply of figures of sales?

2. This Writ Petition has been preferred challenging the order passed by the Commercial Taxes Tribunal, Ranchi dated 4th November, 2009 (Annexure-11) as well as the order of imposition of penalty dated th February, 1994 (Annexure-9) and for quashing and setting aside the order passed by the Appellate Authority dated 30th July, 1996, whereby, order of penalty passed by the Assessing Authority was confirmed (Annexure-10) and for quashing and setting aside the notice by which the petitioner has been asked to deposit the amount of penalty upon dismissal of the its case by the Deputy Commissioner of Commercial Taxes, Jamshedpur (Annexure-18).

3. Factual Matrix:

? M/s. Indian Tube Company Limited was merged with the petitioner by the order of the Hon'ble Calcutta High Court. Indian Tube Company Limited had its manufacturing unit at Jamshedpur and depots in various States of India.

? M/s Indian Tube Company Limited was manufacturing galvanized tubes. Here in this matter, we are concerned with the assessment year 1977-78. The petitioner was engaged in intra-State sale, inter-State sale and sale outside the State (after stock transfer to another State).

? Return was filed for the assessment year 1977-78 (Annexure-1 to the memo of this Writ Petition). The exact figure of sale outside the State (stock transfer) was not mentioned in annual return. Revised return was filed on 11th March, 1983 (Annexure-2), wherein, stock transfer of the goods amounting to Rs.17,13,84,949/- was mentioned.

? Before assessment order was passed, show-cause notice was issued under Section 20(1)(b) of the Bihar Finance Act, 1981 to be read with Section 9(2) of the Central Sales Tax Act, 1956 on 31st December, 1985 alleging that the aforesaid total turnover of Rs.17,13,84,949/- was not stock transfer, but, it is inter-State sale.

? Reply of the show-cause notice was given by the petitioner and explained that Central Sales Tax declaration Form-'F' was filed in support of the claim along with reconciliation between the transfer value and the actual sale price. The reply given by the petitioner is dated 18th January, 1986 (Annexure-4).

? Before the final assessment order was passed, the Deputy Commissioner of Commercial Taxes, Jamshedpur Division, Jamshedpur has imposed penalty under Section 20(1)(b) of the Bihar Finance Act, 1981 for Rs.2,74,21,591.84/- Paise. This order of Deputy Commissioner of Commercial Taxes is dated 24th January, 1986 (Annexure-5).

? Being aggrieved and feeling dissatisfied by the aforesaid order of penalty, the petitioner preferred an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Jamshedpur. The Appellate Authority dismissed the appeal preferred by the petitioner vide order dated 30th May, 1986.

? Being aggrieved and feeling dissatisfied by the aforesaid order of Joint Commissioner of Commercial Taxes (Appeals), Jamshedpur, revision application was preferred before the Commercial Taxes Tribunal, Bihar, Patna. The revision application preferred by the petitioner was allowed and the order of penalty (dated 24th January, 1986) was set aside and the appellate order (dated 30th May, 1986) was also set aside. The matter was remanded with observation in paragraph 13, which reads as under:

“13. The facts involved in this case will indicate that the transactions had been shown alright and the only question of dispute arose a