( 1 ) THE Sales Tax Tribunal (Board of Revenue, Madhya Pradesh) has made this reference under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh. The question referred for our decision is:

"can the penalty for late submission of returns in Form V appended to the Madhya Pradesh Sales Tax (Central) Rules, 1957, be imposed under s 17 (3) of thf Madhya Pradesh General Sales Tax Act. 1958?"

( 2 ) FOR the period, 15th December 1960 to 7th November 1961 the non-applicant assessee was assessed to Central Sales Tax by the Sales Tax Officer, Gwalior, circle No 2. In the said assessment, the Sales Tax Officer imposed a penalty of Rs. 1000 on the assesses under Section 17 (3) of the Madhya Pradesh General Sales tax Act. 1958. on the ground that the assessee failed to file the returns within the period prescribed by Rule 15 of the Madhya Pradesh General Sales Tax Rules, 1959. Tn appeal, the Board of Revenut set asidp the order taking the view that the penalty under Section 17 (3) of the Madhya Pra-desh General Sales Tax Act, 1958, could be imposed onlv if there were no rules framed by the State Government under Section 13 (3) of the Central Sales Tax Act, 1956 but that as the State government had framed rules under the Central Act. styled as "the Madhya pradesh Sales Tax (Central) Rules, 1957" (hereinafter referred to as the Central rules), and as Rule 7-A of the Rules contained a provision for imposition of penalty for a breach of the Central Rules, therefore no penalty under Section 17 (3) of the madhya Pradesh General Sales Tax Act. 1958, could be imposed.

( 3 ) THE relevant provisions to consider are: i Central Sales Tax Act, 1936.

"section 9 (3): The authorities for the time being empowered to assess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India and subject to any rules made under this Act, assess, collect and enforce payment of any tax, including any penalty, payable by a dealer under this Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences, shall apply accordingly: provided that if in any State or part thereof there is no general sales tax law in force, the Central government may, by rules made in this behalf, make necessary provision for all or any of the matters specified in this sub-section and such rules may provide that a breach of any rule shall be punishable with fine which may extend to five hundred rupees; and where the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues. "

II. M. P. General Sales Tax Act, 1958. "section 17 (3): If a dealer fails without sufficient cause to comply with the requirements of a notice issued under subsection (1) or a registered dealer fails without sufficient cause to furnish under the said subsection his return for any period, the Commissioner may. after giving such dealer a reasonable opportunity of being heard, direct him to pay, by way of penalty, a sum not exceeding one-fourth of the amount of the tax which may be assessed on him under Section 18 or where no tax is payable a sum not exceeding one hundred rupees. " iii. M. P. Sales Tax (Central) Rules. 1957. "rule 7-A: Submission of returns. (1) Every registered dealer liable to pay tax under the Act shall furnish a return in Form V in respect of each period, for which his turnover is required to be determined under Rule 11 of the Central Sales Tax (Registration and Turnover) Rules, 1957, to the assessing authority in the m