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2016 (4) TMI 404 - HC - VAT and Sales TaxWaiver of penalty for the quarters II, III and IV for the year 2006-07 - under the Amnesty Scheme of the Department of Trade & Taxes and Government of National Capital Territory of Delhi - Already paid demand of tax and interest in terms of the rectification orders - Interpretation sought to be placed by the Respondents on the relevant clause is not consistent with the overall purpose of the Amnesty Scheme and the main purpose was to incentivise self-compliance by the dealer with the tax demand - Held that:- While it is true that the Petitioner had paid tax and interest for the period in question even prior to the Amnesty Scheme, the fact remains that the Petitioner had challenged the levy of penalty for the same period and the said challenge is pending in the appeal before the AT. It is anomalous that the person who pays part tax and interest would be entitled, while calculating the tax dues, under clause 3 of the Amnesty Scheme to seek waiver of penalty whereas the person who paid the tax and interest and challenged the levy of penalty would not be entitled to seek waiver. In other words the Scheme is sought to be interpreted in such a manner that compliance with part of the demand, i.e., payment of tax and interest but not penalty, would make a person ineligible to the Amnesty Scheme qua the penalty amount under challenge whereas a person who defaults in paying the tax and interest as well as penalty would be entitled to be benefit of the Amnesty Scheme and claim waiver of penalty. As no reasons have been given by Respondent No. 2 in the so-called order dated 23rd July 2014 in DSC Form 3 for rejecting the claim of the Petitioner, the impugned order is set aside and the petitioner is entitled to claim the benefit of the said Amnesty Scheme. - Decided in favour of appellant
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