UNION OF INDIA vs M/S. KRISHNA PROCESSORS

The Supreme Court interpreted Section 7(5) of the Entry Tax Act, establishing that the non-submission of statements can lead to a rebuttable presumption of facilitating tax evasion. The Court clarified that the burden of proof lies with the registered dealer to demonstrate that non-submission was not intentional. It held that the penalty under this section is discretionary and not ultra vires, thereby affirming the validity of the section. The matter was referred to a larger bench due to conflicting opinions in previous judgments regarding the interpretation of civil liability under Section 271(1)(c) of the Income Tax Act.