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2014 (2) TMI 487 - HC - VAT and Sales TaxPenalty under section 15-A (1)(e) of the U.P. Trade Tax Act - Tax u/s 3-F - Imposition of tax on transfer of right to use on the application - Tribunal passed an interim order on the second appeal staying realisation of the disputed amount of tax upto 80% - While the second appeal was still pending before the tribunal and yet to be finalised, the Assistant Commissioner passed order on 8.9.1997 by which it imposed a penalty on the assessee under section 15-A (1)(e) of the Act taking a view that the assessee had not deposited the tax within time - Held that:- since the assessee had taken recourse to the statutory remedy available to him under the Act and had filed an appeal as well as stay application, it is not possible for this court to come to the conclusion that the assessee had without reasonable cause failed to deposit within time allowed the tax which was due. To come to this conclusion would mean that it would render statutory remedy itself nugatory and of no use. The facts that the tribunal did not pass orders on the stay application filed by the petitioner for six months, cannot be said to be a fault attributable to the assessee. The assessee on his part had within time prescribed applied for the statutory remedy and it was statutory authority who did not pass necessary orders speedily - in order to give meaning of section 15-A (1)(e) of the Act, 3 which has to be read in certain manner and if a party had applied within time and within time allowed to deposit due tax, it could not be said that it had failed to pay the tax due from him - The delay, if any in passing of the stay order in this case was attributable to the tribunal. The assesee had not failed to comply with the demand of section 15-A (1)(e) of the Act. The order imposing penalty on the assessee is thus set aside - Decided in favour of assessee.
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