G.S. SINGHVI, J.

1. In compliance of the direction given by this Court in S.T.C. No. 8 of 2001 decided on August 26, 2003 the Sales Tax Tribunal, Haryana (for short, "the Tribunal") has referred the following questions of law for its opinion :

"1. Whether the dealer has committed any default under section 25-B(1) of the Haryana General Sales Tax Act, 1973 ?

2. Whether in the circumstances of the case, Sales Tax Tribunal is justified to uphold the penalties when the default is not wilful and tax has been ultimately deposited in the Treasury ?"

While framing assessment in the case of M/s. National Hydro Electric Power Corporation Ltd., which is now known as Power Grid Corporation of India Ltd., (hereinafter described as "the assessee") for the year 1989-90, the Assessing Officer took note of the fact that the assessee had failed to fulfil its obligation to deduct 2 per cent lump sum tax in terms of section 25-B of the Haryana General Sales Tax Act, 1973 (for short, "the 1973 Act") read with notification dated March 24, 1989 issued by the State Government from the amount payable to M/s. K.E.C. International Ltd., (hereinafter described as "the contractor") for executing works