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2012 (9) TMI 630 - SC - VAT and Sales TaxChallenge the rate of penalty provided in Section 78(5) of Sales tax Act - Claim for No or Less Penalty - Held that:- As decided in State of Rajasthan & Anr. Vs. D.P.Metals [2001 (10) TMI 881 - SUPREME COURT OF INDIA] that once the ingredients of Section 78(5) are established, after giving a hearing and complying with the principles of natural justice, there is no discretion not to levy or levy lesser amount of penalty - This provision cannot be read as to imply that the penalty of 30% is the maximum and lesser penalty can be levied. The legislature thought it fit to specify a fixed rate of penalty and not give any discretion in lowering the rate of penalty. Thus quantum of penalty under the circumstances enumerated in Section 78(5) cannot be regarded as illegal. The legislature in its wisdom has though it appropriate to fix it at 30% of the value of goods and it had the competence to so fix - against assessee.
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