Union Of India & Ors vs M/S. Krishna Processors & Anr

The Supreme Court clarified that Section 7(5) of the relevant statute establishes a rebuttable presumption regarding the non-submission of statements by registered dealers, placing the burden of proof on them to demonstrate that such non-submission was not intended to facilitate entry tax evasion. The Court held that the penalty under this section is discretionary and can be adjusted based on the circumstances of each case. Consequently, the High Court's ruling declaring Section 7(5) ultra vires was overturned, affirming the validity of the section and the necessity for its interpretation as stated.