RAMAKRISHNAN, J.

The petitioner in this revision case is the State of Madras represented by the Deputy Commissioner of Commercial Taxes, Coimbatore Division, and the respondents are a firm of jewellers, Messrs Angappa Chettiar and Sons, Tiruppur. The short question raised for decision in this revision case is whether the Sales Tax Authorities were justified in awarding a penalty on the respondents for the alleged failure to disclose a turnover assessable under the Central Sales Tax Act during the year 1959-60 to which the assessment relates. The question about the existence of such omitted turnover arose because on the inspection of the premises of the dealer, a small note-book and certain slips were discovered which showed that the dealer had despatched goods by V.P.P. to addressees outside Madras State to the value of Rs. 27, 840 in the year in question. The department therefore inferred that this represented omitted turnover of inter-State sales and this was added to the turnover revealed by the assessees' accounts. In addition to adding the turnover, the assessing authorities levied a penalty on the respondents of Rs. 2, 923 under section 16(2) of the Madras General