SREE BALAJI RICE MILL, BELLARY vs STATE OF KARNATAKA

The Supreme Court held that the proceedings for quantification of tax under Section 12(3) of the Karnataka Sales Tax Act, 1957 and the levy of penalty under Section 18A are distinct and require separate procedures. The Court ruled that a revisional order under Section 22A cannot direct the levy of penalty unless there is a specific order under Section 18A. The Court set aside the High Court's dismissal of the appellant's appeal, thereby allowing the appeal and restoring the original assessment order.