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2015 (12) TMI 177 - HC - VAT and Sales TaxLevy of penalty - Forfeiture of remitted tax under section 47(2)(b) of the Karnataka Value Added Tax Act, 2003 - Levy of penalty - Held that:- Assessee sold naphtha and collected sales tax from the purchaser. Though in the earlier returns the assessee had declared nil sales and nil tax, on receipt of a portion of amount, he filed a revised return within 11 days from the date of filing of original returns and paid the entire tax with interest for 11 days. Therefore, the assessee had never disputed the tax liability. - levy of penalty was not justifiable because the assessee had filed a revised return, paid tax and interest within a span of 11 days. Hence, imposition of penalty is not being automatic unless the intention to evade tax is made out or any mala fide act is made out, the penalty cannot be imposed. Therefore, the order of imposing penalty is unsustainable. Accordingly, it is hereby set aside - Decided partly in favour of Revenue.
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