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2016 (9) TMI 562 - HC - VAT and Sales TaxClassification - Split Air Conditioner - taxable at 4% or 20%? - works contract - eligibility for composition scheme - Reduction of penalty - Held that: - the revision petitioner is entitled to invoke Section 7-C of the Act, which starts with a notwithstanding clause and gives option to the assessee that instead of paying tax, in accordance with Section 3-B, he may pay, either on the total value of each works contract or on the total value of all works contract, executed by him, in a year, tax calculated at the rates specified. Payment of 4% tax on the turnover of composite works contract, under Section 7C of the Tamil Nadu General Sales Tax Act, has been admitted - Levy of penalty would not be justifiable, if at the time of assessment, turnover has been recorded as per the books of accounts, verified by the department and in such circumstances, suppression cannot be attributed. Transaction giving rise to taxable turnover, has been categorically declared by the assessee as composite works contract and at the concessional rate of 4%, tax has been paid. In such circumstances, it cannot be contended that it is a deliberate and wilful non-disclosure of turnover, in the return and thus, rightly proceeded, under Section 12(3)(b) f the Act, which deals with Submission of incorrect or incomplete return - penalty not imposed - appeal allowed - decided in favor of appellant.
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