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2014 (2) TMI 488 - MADRAS HIGH COURTPenalty under Section 16(2) of the Tamil Nadu General Sales Tax Act 1959 - Whether on the facts and in the circumstances of the case, the Tribunal was right in levying penalty on the petitioner even after holding that the petitioner has reported the turnover and claimed exemption is correct in law - Held that:- The assessing authority also levied penalty under section 16(2) of the TNGST Act, 1959. According to the assessees the claim of exemption was made bona fide and the same was also accepted in the original assessments. The assessments were revised on a mere change of opinion. Therefore, the penalty under section 16(2) of the Act would not be attracted. According to the Revenue, the original penalty orders of the assessing officer should be restored. The assessees have filed counters for enhancement petitions filed by the department. According to the assessees the Appellate Assistant Commissioner ought to have deleted the entire penalty instead of sustaining 50 per cent of the penalty levied by the assessing authority. It remains to be seen that the exemption claimed by the assessees was allowed in the original assessment. The non-disclosure of turnover on the apart of the assessees came into existence because of the revised assessments made by the assessing officer. Simply because the assessees' claim for exemption was negatived by the department, that does not mean that the assessees have suppressed anything. Under these circumstances, the Tribunal was correct in holding that no penalty is exigible in the case of all the assessees under section 16(2) of the Act - Following decision of Deputy Commissioner of Commercial Taxes, Trichy Division, Trichy Versus VR. Kuppusamy Gounder and Sons [1994 (11) TMI 375 - MADRAS HIGH COURT] - Decided in favour of assessee.
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