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2018 (3) TMI 1103 - HC - VAT and Sales TaxTax under the compounding scheme - The notice was on the ground that there could be no compounding applied for, for ice-creams which is not a cooked food. Held that: - a penalty has been imposed along with the regular assessment made, which is not possible. The assessee made a bonafide attempt to be included under the compounding scheme on the reasonable presumption that “ice-creams” would also be “cooked food”. A vigilant officer could have rejected the application. The department was not vigilant but was also lethargic in so far as permitting the assessee to make remittances under the scheme for the subsequent year also when already notice was issued for cancellation of the compounding in the previous year. There can be no contumacious conduct found on the part of the asessee. The assessing officer would issue fresh notice for assessment, and the assessee would be entitled to produce the purchase invoices for the two years, which shall be taken into account and the input tax credit allowed to the extent proved by invoices - appeal disposed off.
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