Civil Appeals Nos. 314 to 316 of 1976. Appeals by special leave from the judgment and order dated July 3, 1974, of the Gujarat High Court in S.T.R. No. 10 of 1974. The judgment of the High Court is reported as Morvi Cotton Merchants' Industrial Corporation Ltd. v. State of Gujarat 1975 (36) STC 347 (Guj), decided on October 25, 1990. R. N. Sachthey, Senior Advocate (Anip Sachthey, Advocate, with him), for the appellant. B. V. Desai and Miss Pabna Sharma, Advocates, for the respondent.


We have heard learned counsel for the appellant. The Gujarat High Court in the order under appeal has found that knowledge of law in the facts and circumstances of this case could not be attributed to the assessee-respondent as in the first place the law was as found in an unreported decision of that High Court known as Monogram Mills' case [S.T.R. No. 6 of 1964 decided on 25th November, 1964 (Gujarat High Court)] and on the other hand the assessee-respondent having treated kantan and patti to have been sold incidentally as part of baled cotton. On such view and basis the High Court advised the Sales Tax Tribunal to wipe out the penalty of Rs. 3, 500 imposed on the respondent for three assessment years 1967, 1968 and 1969. The order of the High Court was passed way back in the year 1974. The sum being insignificant in the modern context we are not inclined to interfere in the decision of the High Court and in no way express

any opinion as to the correctness thereof. In these circumstances we dismiss the appeal. There will be no order as to costs. Appeals dismissed.