JUDGMENT S.L. Saraf, J.
1. The applicant is engaged in the business of manufacture and sale of paper. On account of admitted tax a cheque for a sum of Rs. 96,928 being cheque No. 1572 dated September 30, 1983 payable at Bank of Baroda, Dhamaura, was given by the assessee to its assessing authority. The said cheque was, however, not deposited in the State Bank by the sales tax authorities prior to October 3, 1983. The said cheque was, however, encashed on November 1, 1983. Meanwhile on October 31, 1983 the assessing authority initiated the proceedings under Section 15-A(l)(qq) of the U.P. Sales Tax Act, 1948 calling upon the applicant to show cause as to why penalty be not imposed for non-deposit of admitted tax and subsequently a penalty was imposed for Rs. 14,500 under the said provisions of the Act.
2. The contention of the petitioner is that the cheque for the admitted amount of tax was paid by the assessee to the officer concerned and under rule 49 of the U.P. Sales Tax Rules, 1948 the date of submission of the cheque to the officer concerned should be treated as the date of deposit. In that view of the matter the deposit was made within time and there was no question for imposition of any penalty. The cheque was given to the Sales Tax Officer, Rampur on September 30, 1983 and if there was a delay in encashment the assessee has nothing to do with the same. The finding of the learned Tribunal that there was no sufficient funds available in the bank account of the assessee is without any basis and without any material. Neither the cheque was dishonoured nor it was returned to the department with the endorsement that there was no sufficient funds in the account of the applicant, as such the order dated July 17, 1989 is hereby quashed and set aside. The penalty order passed by the Sales Tax Officer dated November 18, 1983 is also quashed.
3. In the result, the revision succeeds and is allowed. The orders passed by the Tribunal as well as the assessing authority are quashed. There will be no orders as to costs.
4. Let a copy of this order be sent to the Tribunal concerned under Section 11(8) of the Act.