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2017 (4) TMI 878 - HC - VAT and Sales TaxPenalty u/s 34 (8) of the UPVAT Act - late deposit of TDS - Revenue contends that liability to pay penalty consequent upon delayed deposit of tax deducted at source is a necessary corollary of delayed deposit of tax deducted at source, and considerations like intent or malafide etc. are not material - Held that: - reliance was placed in the case of Price Waterhouse Coopers Pvt. Ltd. Vs. commissioner of Income Tax and another [2012 (9) TMI 775 - SUPREME COURT], for coming to the conclusion that where interest over delayed deposit of tax deducted at source is paid, the levy of penalty may not be imposed. The requirement of deposit of interest is an independent provision, which has no relevance so far as imposition of penalty is concerned. Under the statutory scheme, once it is found that tax deducted at source was not deposited within time, as was warranted under sub-section 6, payment of interest follows as a consequence and has to be paid. Imposition of penalty is a distinct provision imposing liability of penalty to the extent permitted in law. Tribunal was not justified in deleting the penalty levied under Section 34 (8) - matter is remitted back for a fresh consideration on the quantum of penalty to be imposed - appeal allowed by way of remand.
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