2013 (7) TMI 300

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..... tition, the petitioner who is a registered dealer challenged the legality and validity of the penalty notice issued under section 12(5) of the U.P. Tax on Entry of Goods into Local Areas Act, 2007 (hereinafter referred to as 'the Act'). 2. It is desirable to have the background facts of the case. The petitioner is manufacturer of Pan Masala containing tobacco and is registered under the U.P. Trad .....

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..... d summarily by judgement and order dated 23-5-2012 by this Court. Petitioner applied for refund of the amount deposited towards entry tax. Thereafter, the petitioner has been served with the impugned penalty notice u/s. 12(5) read with section 8D(6) of the Act. Challenging the legality and validity of the aforesaid notice dated 12-3-2012 the present writ petition has been filed. 3. Counter affida .....

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..... ons of learned counsel for the parties and perused the record. The basic facts are not in dispute. It was not disputed and could not be disputed by learned counsel for the respondent that it has been ultimately held that the petitioner is not liable to pay any entry tax. The said order of the Commercial Tax Tribunal has been confirmed in revision by this Court. A bare perusal of penalty notice wou .....

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..... es of the petitioner. A further finding has been recorded that there is no evidence that any sale has been made outside the local area. There is also no averment in the penalty notice that any sale was affected by the petitioner outside the local area. Thus, it follows that the petitioner made all the sales within the local area. Consequently, the impugned penalty notice is unsustainable under the .....

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..... t. 8. In the result we find substance in the writ petition. The impugned penalty notice is illegal and unwarranted in law and the same is hereby quashed. The penalty proceedings against the petitioner stands quashed. By way of clarification it is stated that the petitioner has not pressed relief no. 2 as prayed in the writ petition. The writ petition succeeds and allowed. No order as to costs.

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