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2014 (1) TMI 1426 - HC - VAT and Sales TaxPenalty u/s 16(2) - Suppression of taxable turnover - Whether the Hon'ble Tribunal has erred in confirming the imposition of penalty under Section 16(2) of the erstwhile Tamil Nadu General Sales Tax Act, 1959 - Held that:- levy of penalty under Section 16(2) of the Act would arise only if a dealer evades payment of tax due to wilful non-disclosure. Further the Assessing Authority must record the satisfaction that the escape from assessment is due to wilful non-disclosure of the assessable turnover. As is seen from the Assessment Order, the reason recorded by the Assessing Officer for revision of assessment was that that the assessee included the entry tax paid into the price for the purpose of charging the sales tax - No ground for holding that there is a suppression of turnover with a wilful intention for the purpose of levy of penalty. The purchase price are consideration for goods, which is agreed to between the willing buyer and the seller, who admittedly, agreed for fixing the price that was inclusive of the entry tax paid and that does not mean that the assessee had wilfully suppressed the turnover. In fact, the assessee had disclosed the entire turnover in the books of accounts, which was dissented to by the Assessing Officer - Therefore, order of the Tribunal is set aside - Decided in favour of assessee.
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