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2014 (5) TMI 645 - HC - VAT and Sales TaxImposition of Penalty - Penalty u/s 22(2) of Act - Levy of tax on gallonage fee – Taxable Turnover - Includibility under turnover – Taxable Limit – Conduct of assessee – Assessee had knowledge of turnover being below limit attracting charge - Held that:- It is admitted by the assessee that the turnover during the period 16.7.1996 was ₹ 19,237.50, which was well below ₹ 1,00,000/- turnover limit prevailing during the period - So too the taxable turnover from 17.7.1996 to 31.3.1997 was ₹ 1,32,001/- - By Act 38/96, the turnover limit for attracting charge was raised to ₹ 3,00,000/- - Thus, irrespective of whether the turnover upto 16.7.1996 is taken as one block and from 17.7.1996 to 31.3.1997 as one block, with the total turnover remaining at ₹ 1,76,239/- and hence, below the chargeable minimum, it is too difficult to accept the case of the assessee that when the reported turnover was very much within the knowledge of the assessee at ₹ 1,51,237/- and that too well below the minimum, the assessee could justifiably contend that there are no ground to warrant levy of penalty u/s 22(2) of the Act. The fact that it had remitted the sum before the assessment was not justifiable of its violation, more so when it had the knowledge of the turnover well below the chargeable limit – This court is not satisfied with the claim of the assessee herein in retaining the tax collected without taking any steps to refund the same to the customers even by 31.3.1997, when by that time it had realised the taxable limit was well below ₹ 3,00,000/- - In the absence of any circumstances shown as to the bonafide of its conduct, there is no hesitation in rejecting the plea of the assessee - Consequently, the revision is dismissed – Decided against assessee.
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