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2017 (2) TMI 1230 - HC - VAT and Sales TaxMake over of the excess collections qua movie tickets - penalty - The inspection, apparently, revealed that the petitioner was collecting the component of entertainment tax as well from the viewers, although, the subject movie had been exempted from tax - Held that: - A perusal of the contents of the said reply would show that the petitioner has not denied the fact that cash, amounting to ₹ 8,92,862/-, purporting to be proceeds of sale of tickets, was found in his premises - A perusal of the reply would show that the petitioner was not able to explain the difference in the two products arrived at by the first respondent. The first product was arrived at by multiplying the number of tickets sold with the rates stipulated qua tickets, albeit, net of taxes, while the second product involved the multiplication of tickets sold by rates, which included the component of tax. The variation in the two products, according to the first respondent, was equivalent to the cash found, on inspection in the premises of the petitioner. This variation, the petitioner was not able to address in the reply. I find no error in the order - the theatre owner cannot illegally collect tax and, then, keep the proceeds with himself. Penalty - Held that: - the provision invoked does not apply, to the instant circumstances - penalty is set aside. Petition allowed - decided partly in favor of petitioner.
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