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2022 (2) TMI 1327 - HC - VAT and Sales TaxLevy of penalty U/s 8 D(6) of the UP Trade Tax Act - payments were made but T.D.S. could not be deducted as required under Section 8 D (1) of the Act - it is submitted that T.D.S. amount along with interest was deposited prior to initiation of penalty proceeding under Section 8 D (6) of the Act and there was no loss of revenue - Whether the Tribunal justified in not considering the specific remand direction of this Hon'ble Court? HELD THAT:- Admittedly, it is not in dispute that the payment of T.D.S. amount along with interest of upto date has been deposited and this fact has also been noticed in the order passed by this Court in the earlier round of litigation i.e. in T.T.R. No. 358 of 2010 vide order dated 12.2.2015 by which the matter was remanded to the Tribunal for reconsideration. The Tribunal has upheld the levy of penalty under Section 8 D(6) holding that once there was failure to comply with the order, the levy of penalty is justified. Hon'ble the Supreme Court in the case of HINDUSTAN STEEL LIMITED VERSUS STATE OF ORISSA [1969 (8) TMI 31 - SUPREME COURT] clearly shows that the penalty could not be levied merely on the basis of failure to carry out statutory obligation. This Court has specifically held that once the amount of T.D.S. along with interest has been deposited, there is no loss to the revenue - In the present case, the revisionist has deposited the amount along with interest even before initiation of penalty proceedings under Section 8 D (6) of the Act. Once the T.D.S. amount along with interest has been deposited before initiation of penalty proceeding under Section 8 D (6) of the Act, the penalty proceeding could not be justified as there was no loss of revenue. The revision is allowed with cost of Rs. 5000/-, which shall be deposited within a month. The revenue is at liberty to recover the said amount from the erring officer.
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