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2010 (7) TMI 917 - GUJARAT HIGH COURTWhether the mistake on the part of the petitioner in having paid the entry tax by filling up an incorrect form does not entitle respondent No. 3 to hold that entry tax has not been paid when in fact, the actual tax payable had been paid by the petitioner and had been accepted by the bank as payment of tax under the Entry Tax Act? Held that:- A bona fide mistake on the part of the petitioner cannot be sought to be taken advantage of by the Revenue merely with a view to extract more money from the petitioner in the form of interest and penalty taking shelter behind a highly-technical objection that the amount payable by way of entry tax, though actually deposited with the Department well within the prescribed time-limit, had been deposited under a wrong form. Thus the petitioner having paid the amount payable towards entry tax within the prescribed period of limitation, albeit under a wrong form, the respondents are not justified in raising demand for payment of interest and penalty against the petitioner The action of the respondents in attaching the bank account for recovery of the entire amount, including penalty and interest during the pendency of the petition also deserves to be deprecated. Considering the fact that the petitioner having already deposited the amount in question, may be under a wrong form, and the amount was lying with the Department, the circumstances did not justify resorting to such drastic action. Hence, the respondents are not justified in attaching the bank account of the petitioner.Appeal allowed.
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