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2005 (3) TMI 446 - SC - VAT and Sales TaxWhat is the scope and effect of section 22-A of the Karnataka Sales Tax Act, 1957? Whether a penalty order under section 18-A of the Act forms a part of an assessment order? While purporting to revise an order under section 12-A which neither expressly nor impliedly refer to any proceeding under section 18-A and were thus not within the contemplation of the assessing authority while passing the order under section 12(3), it is open for the Commissioner, while purporting to act under section 22-A in respect of the order under section 12(3) to pass an order under section 18-A either as a part of the order under section 22-A or separately as such under section 18-A. Whether the revisional authority was right in levying penalty under section 18-A of the Act for the first time when the language employed in section 18-A of the Act did not confer any power on him for doing the same? Held that:- Appeal dismissed. The argument of the learned counsel for the appellant that the revising authority or the appellate authority higher than the assessing authority is not competent to levy a penalty for the first time when no penalty has been levied by the assessing authority is wholly untenable, without statutory basis and unreasonable from any point of view. The said plea is liable to be rejected. The non- levy of penalty is itself an illegality caused by a failure to exercise the jurisdiction by the assessing authority and therefore, prejudicial to the interests of the Revenue. Hence the levy of penalty by means of an order in revision proceedings is reasonable, just and proper and therefore, not liable to be faulted.
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