Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2007 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (10) TMI 594 - ORISSA HIGH COURTWhether on facts and in the circumstances of the case, any nexus exists between the alleged suppression and enhancement made by the authorities? Whether on facts and in the circumstances of the case, levy of penalty under section 12(8) of the Orissa Sales Tax Act, 1947 to the extent of ₹ 10,000 was justified? Held that:- rom the operative portion of the re-assessment order under section 12(8) of the Act, it clearly reveals that penalty has been levied in a mechanical manner and no reason whatsoever has been stated in the order for the levy of such penalty. From Slip No. 2 and Slip No. 3 which were detected by the Inspector of Vigilance, the total suppression has been determined to ₹ 928.50 paise. Therefore, one we have come to a finding that the petitioner has, in fact, suppressed the sales, then in terms of the judgment in the case of Hindustan Steel Ltd. [1969 (8) TMI 31 - SUPREME Court] we are of the view that the petitioner has failed to discharge its statutory obligation and the act of suppression on its part amounts to a deliberate defiance of law and/or establishes the petitioner's dishonest conduct and also establishes its conscious disregard of its statutory obligation and therefore, levy of penalty in the present case is wholly justified. But since we have determined the suppression of sales at ₹ 928.50 paise and further, answer the question No. 1 by directing enhancement of turnover to ₹ 18,570 and levy of tax thereon, we, therefore, answer question No. 2 framed above, in favour of the Revenue and hold that in the facts and circumstances of the case, levy of penalty under section 12(8) of the Act is justified but should be limited to an amount would extent equal to the tax amount that would be determined on the basis of the answer to question No. 1 framed above. Revision allowed.
|