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2010 (9) TMI 976 - GAUHATI HIGH COURTWhether a dealer, within the meaning of section 2(8) of the Tripura Value Added Tax Act, 2004 can be made liable to pay penalty for evasion of tax if the dealer has, within the financial year, paid all taxable dues within due time, but has committed error, while submitting return with regard to the taxable liability and did not file, thereafter, revised return within the prescribed period and if so, when such a penalty can be imposed on the dealer? Held that:- In the present case, when the admitted position is that the books of account were correctly maintained and all the tax, payable by dealer, in the present case, had been paid by the dealer, the mere fact that there were incorrect entries in the return filed by the dealer and that the revised return had not been filed within the prescribed period, no inference could have been drawn, in the complete absence of any other material, that the dealer had evaded taxable liability, particularly, when tax, which fell due, was paid by 12 monthly returns. Mere failure to submit correct return or correct revised return, within the prescribed period, cannot be equated with evasion of tax attracting penal provisions of section 75A, especially, when the dealer had, admittedly, paid his taxable liability within the due period and the State had not suffered any loss of Revenue. Because of what have been discussed and pointed out above, this court is of the considered view that the imposition of penalty, in the present case, suffers from complete non-application of mind. The tax imposed and the demand made are ex facie illegal and cannot be sustained. Appeal allowed.
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