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2008 (1) TMI 831 - HC - VAT and Sales TaxWhether, in the facts and circumstances of cases at hand, the respondents were justified in imposing interest/penalty under section 26(4)(a), 26(4)(b) and 26(4)(c) of the M.P. Vanijya Kar Adhiniyam, 1994? Held that:- Penalty/interest could be levied if the dealer fails to furnish returns/revised return or pay tax due as per return in the prescribed manner and/or in time. An exception however is carved out to the extent that the failure must be without sufficient cause. Thus under the statute it is mens rea not to file return/pay tax without there being a bona fide reason which forms the bedrock for levying penalty/interest on the non-payment/ delayed payment. In the instant case, as revealed from the facts noted above, there was sufficient cause for not paying the tax for different periods between April 9, 1990 to April 8, 1999 which, in fact, is now covered by the eligibility certificate dated December 6, 2005. Thus, if there existed a dispute rendering non-grant of eligibility certificate which was ultimately granted from a retrospective date, the petitioner was prevented by a sufficient cause. That being so, the levying of penalty and interest was uncalled for. W.P. allowed.
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