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2022 (1) TMI 104 - HC - VAT and Sales TaxJurisdiction - power of Sales Tax Officer to impose penalty u/s 9-B(3) of the O.S.T. Act, 1947 - absence of any delegation of power by the Commissioner of Sales Tax after substitution of Section 9-B(3) with effect from 12.3.1983 - penalty u/s on the ground that the Petitioner’s application for summoning witnesses was not entertained by the STO - HELD THAT:- In the present case, as noted by the Tribunal in the impugned order, the Tribunal at the outset noticed that in terms of the latest circular / notification, the STO has been delegated with the power to impose penalty under Section 9-B(3) of the OST Act not exceeding two times only of the tax so realized. It is also noticed by the Tribunal that, the power to impose penalty exceeding two times of the tax lies only with the Commissioner. However, in the present case the STO proposed to impose penalty not exceeding two times the tax. This was not to be disputed in the Tribunal by the counsel for the Petitioner. Consequently, as per the Circular in force, the STO did not exceed his jurisdiction in initiating the penalty proceeding. The question framed by this Court by the order dated 10th January, 2007 is answered with the affirmative, i.e. in favour of the Department and against the Petitioner assessee by holding that the STO was within jurisdiction in imposing the penalty, since the proposed penalty did not exceed twice the tax involved - Petition dismissed.
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