9911796707
TMI Blog2001 (4) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... e placed in an incongruous position if we were to decide these petitions on merits one way or the other because what was submitted by the petitioner's learned counsel was that on a verification of the records from his client's possession it is confirmed that the appeals whereby the petitioners have questioned the validity of the tax imposed on them are yet to be decided by the Tribunal. Therefore, if for any reason the petitioners were to loose on merits before this Court and, on the other hand were to succeed before the Tribunal they would be in a position whereby the department upholds the non-levy of tax but at the same time, the court upholds the penalty that has been imposed on them on the ground of non-declaration of the very commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is background that the department came to know about this transaction and that consequently, it was wrong on the part of the department to either suspect or conclude that there was any attempt to evade tax on the petitioner's part. The submission proceeds on the footing that the petitioners genuinely believed that the amount realised from these contracts was not susceptible under the Karnataka Sales Tax Act, 1957 and that this was the reason why the same were not offered for tax. We refrain from saying anything with regard to the merits or otherwise of these contentions because as has emerged in the course of the argument from both sides, there is much to be said on either side. Ultimately, the petitioners were required to pay the tax and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear that these orders are not set aside on merits but are set aside only on procedural grounds for the reasons set out by us in this order. We direct that these cases concerning levy of penalty shall stand remanded to the Tribunal and that they shall be heard along with the petitioner's appeals regarding the levy of tax. The Tribunal shall give specific notice to the petitioners informing them that both sets of appeals will be heard together by the Tribunal. The Tribunal shall after hearing the parties pass fresh orders according to law as far as the penalty proceedings are concerned. As indicated earlier, it is for this reason that we have refrained from making any observations with regard to the merits of these petitions. 5.. With the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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