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TMI Blog2023 (2) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... al in Second Appeal No.26 of 2011 for the Assessment Year 2007-08. 3. The said revision was admitted on 10.01.2023 on following question of law:- "(a) Whether in view of the judgment of the Hon'ble Court in the case of Lala Rajpai Rai and Associate Hospital Vs. C.S.T. reported in 1996 NTN Pg. 152 and Flex Vouchers Pvt. Ltd. Vs. C.T.T. reported in 2005 (41) STR Pg. 25 Flex (supra) the levy of penalty upon the applicant is justified? (c) Whether in view of the facts and circumstances of the case, levy of penalty of Rs.34,86,000/- under Section 8(d)(6) of the U.P. Trade Tax Act, is justified?" 4. The brief facts involved in the present revision are that the revisionist is an educational institution imparting education. The primary an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appeal was filed before the Additional Commissioner, Jhansi which was dismissed by order dated 20.12.2010. Further, the assessee filed a second appeal before the Commercial Tax Tribunal, Jhansi which was also dismissed by order dated 27.02.2013, hence the present revision. 8. Learned counsel for assessee submitted that the levy of penalty under Section 8(D)(6) is discretionary and should not be levied mechanically. According to him, Section 8(D)(1) and (6) has to be read in harmony and the maximum penalty which can be imposed is double the amount of deduction which is to be made from the amount paid to a contractor at the rate of 4 %. According to him, the authorities without recording any finding had imposed maximum amount of penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The Act of 2008 is a fiscal act, intended to raise revenue for the State Government. The very purpose is met out, once the dealer to whom the payment has been made by the educational institution is subjected to assessment proceedings and tax liability is created and realized. 14. Initiation of penalty proceedings under Section 8(D)(6) against a Government Institution has not helped the revenue, but such exercise has led to financial loss to the Government by unnecessary expenditure on litigation which, at any cost, should be avoided. 15. The sole object of Section 8 (D) is tax deduction from amount payable to works contractor. Such tax deducted at source from the payment to contractor is treated as payment of tax on behalf of the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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