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2010 (2) TMI 1054 - MADRAS HIGH COURTWhether the Sales Tax Appellate Tribunal is right in holding that penalty is not leviable under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, 1959 for the assessment year 1992-93 since the taxability or otherwise of sale of REP Licence was ultimately settled by the Supreme Court only in the year 1996 in Vikas Sales Corporation case [1996 (5) TMI 363 - SUPREME COURT OF INDIA] ? Held that:- In order to invoke the penalty provision, a dealer, as per the law that stood on that date, must submit the prescribed return within such period as prescribed and only in the event that such return is found to be incorrect and incomplete, then the provision for imposition of penalty can be invoked. As has been correctly found by the appellate Tribunal that on the date when the returns were filed, the question as to whether the sale of REP/Exim scrips was exigible to tax or not was not clear. Till such time the said issue was decided by this Court in P.S.Apparel's case [1994 (4) TMI 366 - MADRAS HIGH COURT], there was a bona fide belief on the part of the dealer in not disclosing the above turnover, as the returns were filed much prior to the said judgment. In that view of the matter, we find no infirmity in the order of the appellate Tribunal. Accordingly, the tax case revision is dismissed.
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