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2017 (2) TMI 419 - HC - VAT and Sales TaxImposition of penalty - Deemed assessment u/s 22(2) of the TNVAT Act, 2006 - whether the impugned notice is premature and is liable to be set aside? - Held that: - Sub-section (4) of Section 22 provides that, if, no return is submitted by the dealer for any period, or, if the return filed is incomplete or incorrect, or, if it is not accompanied by prescribed documents or proof of payment of tax, the Assessment Authority, after making an enquiry, as it may consider necessary, can assess a dealer, by adopting the best judgement principle. It is only after an assessment is complete under sub-section (4) of Section 22, that penalty can be imposed by the Assessing Officer - but, as per the provisions of Clause (iii) of the explanation to Section 22(5), the petitioner is entitled to seek deduction from the tax assessed under sub-section (4) of Section 22 of tax paid on any such turnover on which, tax is paid at a concessional rate, if requisite declarations are furnished, before levy of penalty. The impugned show cause notice being both premeditated and/or premature, is required to be set aside - appeal allowed - decided in favor of appellant.
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