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2008 (11) TMI 618 - HC - VAT and Sales TaxPenalty under section 73(10) of the Orissa Value Added Tax Act, 2004 - Held that:- There is no finding as to whether the Scheduled goods in question are manufactured in the local area or not, and, if brought from outside the local area, whether any opportunity was given to the petitioner to prove that such goods were already subjected to tax or that entry tax was paid on such goods. In absence of any such finding, levy and collection of entry tax on stock of Scheduled goods found in the business premises of a dealer is not authorized under law. In the above fact-situation, collection of penalty amounting to ₹ 35,000 under section 73(10) of the OVAT Act, collection of penalty of ₹ 7,000 and tax of ₹ 3,500 under OET Act is held to be without any authority of law. The petitioner is entitled to get refund of the said amount of ₹ 45,500. Since the petitioner is a registered dealer under the OVAT Act and OET Act, he is entitled to adjust the said amount of tax and penalty against its tax liability in the return filed under those two Acts. However, this order will not stand on the way of Department for initiation of fresh proceeding in accordance with law.
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