2021 (12) TMI 1464 - SCH - VAT and Sales Tax

Levy of penalty - differential tax of duty - HELD THAT - So far as imposing the penalty is concerned, the learned Single Judge set aside the same also on quashing and setting aside the levy of differential tax. However, so far as the Division Bench is concerned, the Division Bench has not at all addressed anything on the levy of penalty. From the impugned judgment and order passed by the Division Bench, it appears that there is no discussion by the Division Bench on the levy of penalty. Therefore, so far as the levy of penalty is concerned, the liberty reserved in favour of the petitioner to approach the Division Bench of the High Court by way of Review Petition(s) and as and when such Revision Petition(s) is/are filed within a period of four weeks from today, the same may be considered in accordance with law and on merits. The present Special Leave Petitions stand disposed of.

Summary

Issues involved:
Levy of differential tax of duty, imposition of penalty, review petition for penalty levy

Levy of Differential Tax of Duty:
The Supreme Court declined to entertain the Special Leave Petitions concerning the levy of the differential tax of duty. The Court dismissed the Special Leave Petitions regarding the levy/demand of differential duty. The judgment and order passed by the learned Single Judge and the Division Bench were reviewed. The Court upheld the decision not to entertain the petitions in this regard.

Imposition of Penalty:
The learned Senior Counsel for the petitioner argued that the penalty imposition was set aside by the Single Judge along with the levy of differential tax. However, the Division Bench did not address the issue of penalty imposition in their judgment. The Court noted the absence of discussion by the Division Bench on the levy of penalty. Consequently, the petitioner was granted liberty to approach the Division Bench of the High Court through Review Petitions within four weeks. The Court directed that any Review Petitions filed would be considered in accordance with the law and on merits.

Review Petition for Penalty Levy:
The petitioner was given the option to file Review Petitions with the Division Bench of the High Court within four weeks regarding the levy of penalty. If the decision in the Review Petitions goes against the petitioner, they were allowed to approach the Supreme Court concerning the penalty levy issue. The Special Leave Petitions were disposed of, along with any pending applications.

This judgment by the Supreme Court addressed the issues of levy of differential tax of duty and imposition of penalty. While the Court dismissed the Special Leave Petitions related to the tax levy, it granted the petitioner the opportunity to seek review of the penalty imposition with the Division Bench. The decision ensured that the petitioner had recourse to both the High Court and the Supreme Court depending on the outcome of the review process.