9911796707
TMI Blog2006 (9) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to levy of tax under the Tamil Nadu General Sales Tax Act in relation to the sale of rice. Rice was exempted from payment of tax upto 26.03.2002 under the relevant notifications under the Tamil Nadu General Sales Tax Act. However, with effect from 27.03.2002 rice was no longer considered as an exempted item and by virtue of a separate notification, tax was leviable at the rate of 2%. Sub position continued till 27.10.2002 and on 28.10.2002, a separate notification was issued making rice as an exempted item and such position is continuing till date. 3. The question relates to assessment and payment for tax in the aforesaid period of about 7 months which fail within the two assessment years namely 2001-2002 and 2002-2003. It is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty should have been imposed, particularly when the assessment was made on the basis of the returns filed and on best judgment. 6. The learned counsel for the petitioners have also invited our attention to paragraphs 6 and 11 of the counter affidavit filed on behalf of the respondents in one of the writ petitions, W.P.No.3188 of 2004, and those two paragraphs are extracted hereunder :- "6. Though the demands were raised, waiver proposals were submitted and thus the demand becomes not enforceable. ... 11. With regard to the averments in paras 10 and 11, it is submitted that as stated on the previous paras, though the demands under tax and penalty were raised, waiver proposals were submitted to the Commissioner of Commercial Taxes, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the matter, in our opinion, there was no question of imposition of any penalty. In this context, it may also be pointed out that the Commissioner had issued instruction to the Assessing Officer to prepare the assessment and simultaneously submit a proposal for waiver and therefore, at that stage, it was not necessary for the Assessing Officer to issue any demand notice and particularly to impose any penalty. On the other hand, the instruction of the Commissioner to the effect that the assessment may be prepared and waiver proposal may be submitted itself indicates that there was no requirement for imposing any penalty. 12. For the aforesaid reasons, the issuance of demand notice imposing penalty is quashed. It is made clear that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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