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TMI Blog2020 (1) TMI 1688X X X X Extracts X X X X X X X X Extracts X X X X ..... e company - HELD THAT:- The stand of the petitioner company has been ratified by the concerned authorities and it has been found that the petitioner company is engaged in the business of power transmission only, and whatever goods were purchased by the petitioner, were the capital goods for installation and transmission of the electricity in the State of Jharkhand. These goods were never sold by the petitioner company, and the Assessing Authority has found the tax liability of the petitioner, to be 'Nil'. As such, the very basis on which the penalty was imposed upon the petitioner company, does not exist anymore. The original order dated 29.1.2016, imposing penalty, shows that under Section 40(2) of the JVAT Act, the penalty equal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JVAT Act, for the alleged concealment of purchases made by the company to the tune of Rs. 69,56,24,365.36, which, according to the Assessing Authority were taxable due to the fact that the goods were purchased for being sold, on which no tax was paid. Upon appeal filed against the said order of penalty, the Appellate Authority confirmed the order, by its order dated 24.5.2016, and the revision, filed against the same, was also dismissed by the Commercial Taxes Tribunal, Jharkhand, Ranchi, (herein after referred to as the 'Tribunal'), by Judgment dated 17.4.2017, passed in Revision Petition No. RN 88 of 2016. Aggrieved thereby, the present writ application has been preferred. 3. The facts giving rise to the present writ application a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also treating these purchases to be meant for sale of the goods, the tax on these purchases were assessed at Rs. 3,47,81,218.27, and based thereon, three times penalty of Rs. 10,43,43,655/- was imposed upon the petitioner company, under Section 40(2) of the JVAT Act. The demand notice was issued only for the penalty, which clearly gave the indication that the assessment of the tax was notional, only for the purpose of determining the amount of penalty. 4. It is pointed out by learned senior counsel for the petitioner company that the registration of the petitioner-company under the category Wholesale and Retail Trade was by mistake and the registration ought to have been under 'Power Transmission', for which application for amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility upon the petitioner company, with which, prima facie we were not satisfied and accordingly, we called for the concerned file to be produced before the Court on the next day. On 3.12.2019 the concerned file was produced before us, and in course of arguments, learned Advocate General intervened in the matter and on the basis of submission of learned Advocate General, the following order was passed on 3.12.2019:- Having heard the matter at length, learned Advocate General intervened in the matter and submitted that an opportunity be given to the authorities concerned to revisit the impugned order and to review the same on merits. At the request of the learned Advocate General, we adjourn the matter for a period of four weeks, giving the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the goods purchased were never sold. Taking into consideration these facts, the reassessment order has been passed, fixing the tax liability of the petitioner as 'Nil', and only due to the fact that the returns were filed after the delay of 64 days, the penalty of Rs. 640/- has been imposed upon the petitioner company. 8. In the supplementary counter affidavit, by which, this order has been brought on record, it is stated that the penalty order is independent of the assessment order, which has been upheld up to the Tribunal, and in such circumstances, it may be appropriate that the legality of the penalty order / impugned order may be adjudicated by this Court. 9. In view of the aforesaid fresh developments that have taken place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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