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2010 (2) TMI 1058 - HC - VAT and Sales TaxWhether, on the facts and circumstances of the case, the authorities below have rightly invoked the provisions of section 51 of the Punjab VAT Act, 2005 and imposed the penalty when the goods were voluntarily reported at ICC and therefore cannot remain unaccounted in the books of account? Whether provisions of section 51 can be invoked and goods detained, if there is a bona fide difference of opinion on the application of rate of tax on a particular kind of goods? Whether the provisions of section 51(7) can be applied and penalty imposed, in a case where the transaction is of inter-State sales and not taxable under the Punjab VAT Act, 2005? Held that:- The authorities below committed a legal error by imposing the penalty on the assessee despite the fact that the goods were voluntarily reported at ICC, especially when it (assessee) has bonafide difference of opinion on the application of rate of tax on goods, falling within the category of "iron and steel". Thus, the substantial questions of law as framed by this court are, accordingly, answered in favour of the assessee.
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