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2014 (9) TMI 668 - HC - VAT and Sales TaxPenalty under Section 45A - non-filing of return and non-payment of tax due - whether the offence alleged is technical in nature - Held that - As per Section 45A if the authority is satisfied that the assessee had failed to submit any return as required under the provisions of the Act or the Rules or and had failed to comply with provisions of the Act or the Rules to make payment of the tax amount due a penalty not exceeding twice the amount of tax or other amount sought to be evaded can be imposed. In the case at hand the specific allegation is that the petitioner had failed in submitting monthly returns for the periods in question and failed to remit the tax due for the said periods. Non-remittance of tax due under the Act and Rules is an offence coming within the purview of Section 45A. In such case the authority is entitled to impose penalty to the tune of twice the amount of tax evaded or sought to be evaded. Therefore I am of the opinion that the view taken by the authorities that non-payment of tax due is not a technical offence and imposition of penalty at twice the amount of tax is sustainable. First revisional authority had already taken a lenient view and reduced the quantum of penalty to equal the amount of tax. I do not think any further reduction of the quantum is warranted. However considering the fact that the order imposing penalty was challenged all along and also considering the fact that this writ petition was pending adjudication before this court from the year 2008 onwards I am inclined to order waiver of penal interest on the amount of penalty finalised if the petitioner remits the amount of penalty determined by the assessing authority within a period of 3 months from the date of receipt of certified copy of this judgment. - Decided partly in favor of assessee.
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