2011 (11) TMI 584 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of penalty under section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 for assessment year 1992-93.

Analysis:
The writ petition was filed challenging the order of the Tamil Nadu Sales Tax Appellate Tribunal restoring the penalty imposed under section 12(3)(b) of the Act. The assessing officer proposed levying tax at different rates based on discrepancies found in the accounts of the dealer, ultimately imposing penalties under section 9(2) of the Act. The Appellate Assistant Commissioner confirmed the turnover but set aside the penalty portion. Both the assessee and the Revenue appealed to the Tribunal, resulting in the restoration of the penalty amount. The petitioner contended that there was no finding regarding the bona fides of the petitioner as required under section 12(3) of the Act in the Tribunal's order. The Tribunal's order lacked consideration of the petitioner's bona fides, as confirmed by factual aspects showing no wilful suppression or lack of bona fides on the part of the assessee. The Tribunal's decision to restore the penalty was deemed erroneous as it did not properly apply legal principles. The High Court set aside the Tribunal's order regarding the penalty, allowing the writ petition in this regard without costs.