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2007 (12) TMI 433 - HC - VAT and Sales TaxPenalty under section 14B of the Punjab General Sales Tax Act, 1948 - Whether there is mens rea on the part of the appellant in the present case so as to attract penalty under section 14B of the PGST Act? Held That:- Tribunal while deciding the appeal observed that the dealer had admitted the factual position regarding supply of material to the Panchkula Society directly by change of documents by ISSCO, Chandigarh who was the main supplier and that the dealer was working on its behalf as a supply contract as well as transporter. The only plea raised by the appellant was that this transaction was first of its kind and it was not aware of the legal position regarding charging of eight per cent inter-State tax and it was under those circumstances that only two per cent tax has been charged and had prayed for taking a lenient view and for reduction of the penalty to the minimum. A perusal of the aforesaid observations shows that the dealer had admitted regarding the commission of the offence but had only prayed for reduction in the quantum of penalty. Once it is established that the dealer was guilty of suppression of sales by charging less tax, it was the discretion of the Assessing Officer to have reduced the quantum of penalty. Since the goods were meant for trade, the amount of penalty cannot be said to be excessive in any manner. In the facts and circumstances, no question of law much less a substantial question of law would arise from the impugned order as claimed by the appellant. Appeal dismissed.
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