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2015 (4) TMI 460 - HC - VAT and Sales TaxReversal of input tax credit - Imposition of penalty - Opportunity of hearing not granted - Held that - in terms of Section 27(3) of the Act, penalty can be imposed for wilful suppression and there is no finding to that effect as far as the petitioner is concerned. - no opportunity was given to the petitioner has not been disputed by the learned Additional Government Pleader - Impugned order is set aside - Decided in favour of assessee.
Issues:
Challenge to order of 1st respondent dated 10.11.2014 regarding Input Tax Credit reversal, addition towards non-filing of form WW, and penalty imposition under Section 27 of the Act. Analysis: The petitioner filed monthly returns for the assessment year 2012-2013 with admitted tax payments. However, the 2nd respondent issued notices proposing to reverse Input Tax Credit on purchases from dealers with cancelled registration certificates and those remitting tax under the compounded scheme. Additionally, a 20% addition was proposed for non-filing of form WW. The petitioner argued that Section 63 A, inserted by Act 18 of 2012, mandates production of audited accounts, with no provision for additions due to belated form WW filing. The impugned order dated 10.11.2014 confirmed the proposals without considering the petitioner's request for time to submit form WW, made on 26.11.2014. The petitioner, unaware of the order when making the request, paid the penalty amount but was not given an opportunity before the order was passed. The petitioner contended that under Section 27(3) of the Act, penalties require wilful suppression, which was not found in this case. The court noted the lack of opportunity given to the petitioner and set aside the impugned order, remitting the matter back to the authority for fresh consideration. The writ petition was allowed, directing the authority to reevaluate the petitioner's case and pass appropriate orders within fifteen days of the petitioner's appearance, ensuring a hearing opportunity. No costs were awarded, and the connected miscellaneous petition was closed.
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