VEERASWAMI, J.

This is to revise an order of the Tribunal upholding validity of the levy of penalty under section 9(3) of the Central Sales Tax Act, 1956, read with section 12(3) of the Madras General Sales Tax Act, 1959. The matter relates to the assessment year 1959-60. The assessee was provisionally assessed for the year on a turnover of Rs. 17, 002.96 on the foot of the return filed by it in Form A. There was an inspection of the place of business by a Special Deputy Commercial Tax Officer (Detection), Thanjavur, along with a certain other officer on 8th October, 1959, and certain secret accounts in Gujarati language were recovered. They are claimed to relate to the years 1954-55 to 1959-60 and transactions relating to the assessee's business. On a scrutiny of the accounts a further turnover of Rs. 5, 63, 053.42 was discovered for the year in question, and eventually there was an assessment of a net turnover of Rs. 3, 86, 099.26. At the same time a turnover of Rs. 1, 76, 954.16 was charged to tax under the provisions of the Central Sales Tax Act. On the view that the assessee failed to disclose the turnover so brought to tax a penalty of Rs. 18, 580.17 was levied under section 9(3) of the Central Sales Tax Act read with section 12(3) of the Madras General Sales Tax Act. We are not mentioning the tax to which the turnover was assessed, because no point has been made before us in regard to it. An appeal and a further appeal failed except to the extent of Rs. 8, 070, the Tribunal as we said, having upheld that part of the penalty.

It is contended before us for the assessee that section 9(3) of the Central Sales Tax Act does not attract section 12(3) of the Madras General Sales Tax Act and, therefore, the penalty levied on the assessee is illegal. Secondly, it is urged that as under section 9 of the Madras General Sales Tax Act, 1939, there was no provision at all for levying penalty, in any case the order relating to penalty under section 9(3) of the Central Act cannot be sustained. We are of the view that both the points are of substance. Sub-section (3) of section 9 adopts the procedure for assessment, collection and enforcement of tax obtaining under the State Act to assessment, collection and enforcement of tax under the Central Act. The sub-section states that adoption of the State procedure includes "any penalty payable by a dealer under this Act." That clearly means that what the sub-section intends is that the local procedure is applied to recovery of assessment, collection and enforcement of penalty, which is payable by a dealer under the Central Sales Tax Act. Unless, therefore, a penalty can be levied under the provisions of the Central Sales Tax Act, like the tax on turnover under that Act, there will be no liability to penalty only be reason of the provisions of the Madras General Sales Tax Act, 1959. In other words, section 12(3) of the Madras General Sales Tax Act is not adopted for purposes of sub-section (3) of section 9. The only provision in the Central Sales Tax Act providing for penalty is section 10 and that does not cover a penalty of the type contemplated by section 12(3) of the Madras General Sales Tax Act, 1959. In our view, therefore, the penalty levied in this case cannot be held to be valid.On the other point too, as we said, the assessee is entitled to succeed. There is clearly no provision in the Madras General Sales Tax Act, 1939, providing for penalty as does section 12(3) of the 1959 Act. If that be so, as we find it is, we cannot impute the intention to section 9(3) of the Central Act to adopt the provision of a State law which did not exist at the time the Central Act was made but came after it. It is a well-known legislative practice for Legislatures to make enactments adopting the frame of another law, either Central or State. But in doing so, the Legislature applies its mind to the law adopted as it exists at the time and makes it part of the law that it makes, instead of repea