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2007 (11) TMI 395 - SC - VAT and Sales TaxPenalty levy - Held that:- Appeal allowed. It is irrational that as against a tax liability of Rs. 3,006, penalty of Rs. 4,39,000 was to be imposed. Though in all cases quantum would not be a relevant factor, but on analysing the scheme of the statute it is clear that the stress is on the contravention. The contravention essentially is of admitting persons without valid ticket and at the relevant point of time, had no nexus with the number of persons. To make the provision stringent the shift has been made to per person. But the amendment has no retrospective effect and is not clarificatory. As noted the amendment does not appear to be clarificatory in nature as contended by learned counsel for the respondent-State. The view of the High Court, therefore, is not correct. The conclusion of the Taxation Board was the correct view.
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