1981 (7) TMI 223 - HC - VAT and Sales Tax

Summary

The Commissioner of Sales Tax sought to set aside a penalty order under section 15-A of the Sales Tax Act. The penalty was imposed for realizing additional tax even though turnover did not exceed Rs. 2,00,000. The revising authority set aside the penalty order as the conduct of the assessee was considered reasonable. The revising authority was justified in considering the concept of reasonableness. The liability to pay additional tax arises only when turnover exceeds Rs. 2,00,000. The penalty proceedings are quasi-criminal in nature. The revision was dismissed as there was a reasonable cause for realizing the additional tax.