( 1. ) THIS is a reference made by the Sales Tax Tribunal under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, referring for our answer the following questions of law:

(1) Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that within the meaning of Section 43 (1) of the M. P. General Sales Tax Act, 1958, the assessee had deliberately furnished a false return by claiming a deduction for supplies of coal to electricity undertakings to the tune of Rs. 19,18,010? And (2) If the Tribunal was justified in this conclusion, whether the penalty of Rs. 8,000 imposed on the assessee is excessive in the circumstances of the case ?

( 2. ) THE period with which we are concerned in this case is from 1st October, 1962, to 30th September, 1963. A penalty of Rs. 8,000 was imposed on the assessee under Section 43 (1) of the Madhya Pradesh Act, read with Section 9

(3) of the Central Sales Tax Act, 1956. The assessee filed its returns in form V under Rule 7-A of the Madhya Pradesh Sales Tax (Central) Rules, 1957. The assessee disclosed all the sales made by It during the relevant period. The assessee, however, claimed exemption from payment