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2016 (9) TMI 1480 - HC - VAT and Sales TaxPenalty u/s 27 3 c of TNVAT Act - no wilful intent to evade - disclosure of assessable turnover - Held that - In the instant case, the assessee accepted the mistake as soon as the show cause notice has been issued and paid the tax. In such circumstances, it cannot be stated that there is a willful non-disclosure of the assessable tax by the petitioner, since the assessment itself has been done only by the impugned order i.e., after the payment of tax by the petitioner - impugned order cannot be upheld - petition allowed.
Issues:
Challenge to penalty levied under Section 27[3][c] of the Tamil Nadu Value Added Tax Act, 2006. Analysis: The petitioner, a registered dealer, challenged the penalty imposed by the respondent under Section 27[3][c] of the Act. The respondent issued a notice alleging the petitioner had suppressed certain purchases. Upon receiving the notice, the petitioner admitted the mistake, paid the tax, and requested the penalty be dropped. However, the respondent proceeded to levy a penalty of 100% of the tax amount. The power to impose such penalty is derived from Section 27[3] of the Act, applicable when there is willful non-disclosure of assessable turnover by the assessee. The court noted that the petitioner promptly acknowledged the error upon receiving the notice and paid the tax immediately. The assessment leading to the penalty was done after the tax payment. The court highlighted that in this scenario, it cannot be deemed as willful non-disclosure by the petitioner. Furthermore, the court found that the respondent did not provide specific reasoning or evidence to establish willful non-disclosure by the petitioner. Consequently, the court concluded that the impugned order by the respondent lacked merit and required intervention. As a result of the above analysis, the court allowed the Writ Petition, quashing the impugned order dated 25.09.2015. The court also ruled that no costs were to be imposed, and all connected Miscellaneous Petitions were closed.
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