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2009 (4) TMI 835 - HC - VAT and Sales TaxBringing the value of the lorry sold by the assessee for taxation and the imposition of penalty under Section 12(5)(iii) of the T.N.G.S.T.Act questioned Held that - As all the authorities have admitted that the entire turnover has been reflected in the books of accounts and also stated in the returns filed by the assessee. Hence, for the invocation of sub-clause (iii) of Section 12(5), the pre-condition is that the return submitted is found to be incorrect and incomplete as per Section 12(4)(iii). None of the authorities below including the Tribunal have given a finding that the return submitted by the assessee is found to be incorrect and incomplete. Hence, in the absence of such a finding, the levy of penalty under Section 12(5)(iii) is not in consonance with the penal provision provided. Hence, the penalty imposed has to be deleted and the same is deleted. To that extent, the appellant succeeds
The 2009 Madras High Court judgement delivered by K. Raviraja Pandian and M. M. Sundresh,JJ. concerns the correctness of the Sales Tax Appellate Tribunal's order dated 13.7.2001 in relation to the taxation of a lorry sold by the assessee and the imposition of a penalty under Section 12(5)(iii) of the T.N.G.S.T. Act. The dispute arises from the Department's view that the lorry sold by the assessee, which was built over a chassis purchased separately, should be taxed separately from the chassis. The Department also levied a penalty on the assessee for this transaction.
During the court proceedings, the assessee did not dispute the assessment but contested the penalty under Section 12(5)(iii), arguing that the turnover on the sale of the lorry was not suppressed and was available in the books of accounts and returns. The court considered the provisions of Sections 12(3) to 12(5) of the Tamil Nadu General Sales Tax Act and noted that for the penalty under Section 12(5)(iii) to apply, the return submitted by the assessee must be found to be incorrect and incomplete as per Section 12(4)(iii). Since none of the authorities had determined the return to be incorrect or incomplete, the court concluded that the penalty imposed was not in line with the penal provision and therefore ordered the penalty to be deleted. The appellant was successful in this regard, and the tax case revision was disposed of accordingly.
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