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TMI Blog2014 (8) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 69(1) and as the amount of tax has already been paid, it is said that challenge is only made to the penalty imposed on VAT. Petitioner is a registered dealer with the Commercial Tax Department and carrying on the business of sale and purchase of Cement at Bhopal manufactured by M/s Diamond Cements, Damoh. An ex-parte order of assessment was passed by respondent No.2 for the assessment year 2004-2005. This assessment order was set aside in appeal and the matter was remanded back. The assessment was done and certain amount with regard to transportation or the fright amount was disallowed so also certain amount with regard to payment through credit note was disallowed. Tax was assessed on these amount and on the ground of concealment, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit note is concerned, learned counsel indicates that Supreme Court in the case of IFB Industries Ltd. Vs. State of Kerala - (2012) 20 STJ 485 has approved the mode of claiming benefit through credit note and as this is held to be a known system of business and trade practise, it is argued that enforcement of penalty on this transaction is also unsustainable. Even though petitioner is not claiming refund of this amount, it is said that imposition of penalty be quashed. Shri Rahul Jain, learned Dy. Advocate General appearing for Revenue tried to justify the Revenue by contending that the amount has been recovered in the light of concealment established in the matter and therefore, there is no illegality. We have heard learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g so, to that extent the imposition of penalty under Section 29 has to be quashed. As far as claiming benefit of transaction made through credit note are concerned, the Supreme Court in the case of IFB Industries Ltd. (supra) has held that discount through credit note issued even subsequent to sale without there mention in sale vouchers is permissible. This is held to be an established trade practice and if the petitioner had also claimed rebate or discount on credit note, in view of the law laid down by the Supreme Court in the case of IFB Industries Ltd. (supra), this will also not amount to concealment or suppression of income subjected to penalty. Taking note of all these factors and law as discussed herein above based on the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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