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2012 (2) TMI 447 - MADRAS HIGH COURTWhether the Appellate Tribunal is correct in sustaining the penalty levied under section 22(2) of the Tamil Nadu General Sales Tax Act and refixed by the Appellate Assistant Commissioner, when there was no excess or illegal collection of tax by the petitioner? Held that:- The assessee was under the bona fide impression that they could make an application for registration within 30 days or before February 24, 1994. With that belief only, the application was made on February 24, 1994. Even assuming that the date should be calculated from the date of change in the constitution, i.e., on January 23, 1994, the application has been made on February 24, 1994 with a delay of one day. In these circumstances, the explanation offered by the assessee for not applying the registration within a period of 30 days should have been accepted by the assessing officer. If that explanation is accepted, in our opinion, the penalty is not automatic and the assessing authority ought to have exercised its discretion not to levy penalty. Though the assessee had collected the tax, the amount had been paid. In these circumstances, the imposition of penalty by invoking the provisions of section 22(2)(i) of the Act is unwarranted. Hence, the substantial question of law raised in the revision is answered in favour of the assessee.
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