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TMI Blog2015 (12) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... hin a span of 11 days. Hence, imposition of penalty is not being automatic unless the intention to evade tax is made out or any mala fide act is made out, the penalty cannot be imposed. Therefore, the order of imposing penalty is unsustainable. Accordingly, it is hereby set aside - Decided partly in favour of Revenue. - S. T. R. P. No. 40 of 2014 - - - Dated:- 9-10-2014 - KUMAR N. AND MANOHAR B. JJ. Smt. S. Sujatha, Additional Government Advocate, for the petitioner. M. Thirumalesh for the respondent. ORDER The Revenue has preferred this revision petition challenging the order dated August 14, 2013 passed by the Karnataka Appellate Tribunal, Bangalore (hereinafter referred to as the Tribunal , for short), wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of ₹ 7 crores to the assessee. The assessee discharged the liability to tax without waiting for the full payment of sale price and tax from M/s. BPCL. On December 31, 2010, the assessee filed revised return in form VAT 100 declared sales of ₹ 49,30,55,504 and paid the full amount of tax of ₹ 6,65,62,493. For the period of delay of 11 days involved, the assessee also paid interest at the rate of 1.5 per cent. per month. 3. The assessing authority issued notice under section 72(2) of the Act proposing to levy penalty of ₹ 66,56,249 equivalent to 10 per cent. of the tax paid. Reply was filed by the assessee. Overruling the said objections, the penalty was imposed. The assessee preferred an appeal against the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the authorities were justified in levying penalty. In order to decide whether the penalty was leviable or not, the Tribunal cannot go into a question of collecting and levying of tax is valid or not ? In the instant case, the assessee sold naphtha and collected sales tax from the purchaser. Though in the earlier returns the assessee had declared nil sales and nil tax, on receipt of a portion of amount, he filed a revised return within 11 days from the date of filing of original returns and paid the entire tax with interest for 11 days. Therefore, the assessee had never disputed the tax liability. Moreover he had collected tax from the purchaser and paid it to the Government. His grievance was, he is not liable to pay any penalty bec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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