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2016 (8) TMI 920 - HC - VAT and Sales TaxDemand of interest and penalty - Nature of works contract civil contract or construction contract - GVAT - contract of coating pipes - eligibility of composition scheme under section 55A of the act - tax rate is 2% or 12% - Held that: - appellant has fairly conceded that looking to the fact that the respondent has passed the assessment order on the basis of material available with it, they were required to pay the tax on the basis of 12% and that has been paid by the appellant since the opinion of the expert was turned out. Activity of coating pipe is civil works and it was under bona fide opinion and following the advise, it has believed to be construction activity. The authorities below have committed an error of law and when the tax imposed has already been paid by the appellant, the penalty and interest is therefore not required to be liable to be paid by the appellant. Interest and penalty if paid, shall be refunded to appellant – appeal disposed off – decided in favor of appellant.
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