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2022 (7) TMI 763 - HC - VAT and Sales TaxBenefit of decision of SC in another case - Levy of penalty u/s 10 of the OET Act - dispute with regard to Levy of Tax on the goods in question is pending before the Apex Court? - HELD THAT:- That can be no doubt that the levy of penalty does not have to be automatic. It is contingent on the STO being satisfied that the escapement of tax was “without any reasonable cause”. In the present case, the justification put forth by the Petitioner is that in terms of the decision of this Court in RELIANCE INDUSTRIES LIMITED VERSUS STATE OF ORISSA (AND OTHER CASES) [2008 (2) TMI 825 - ORISSA HIGH COURT] it withheld the payment of entry tax. However, in the said decision handed down by this Court on 18th February 2008, the challenge to the validity of the OET Act was negatived. The Petitioner did not choose to join the Petitioners who had challenged the vires of the OET Act or even the requirement thereunder of having to pay entry tax on the goods purchased from outside the State - The decision of this Court was applicable to those who had approached it. Even, the interim order passed by the Supreme Court was confined to those parties who had approached the Court. The Petitioner could not have taken advantage of it. Therefore, the Petitioner had no reasonable cause to withhold payment of entry tax when it fell due. The Court is of the view that the penalty under Section 10 (2) of the OET Act was rightly levied on the Petitioner by the STO. In other words, the Court does not find any error having been committed by the STO in exercising the discretion in terms of Section 10 (2) of the OET Act to levy the penalty. The question framed is answered in the affirmative, i.e., in favour of the Department and against the Assessee. It is clarified that since the Tribunal has deleted the levy of interest as ordered by the DCST, it is not payable by the Assessee and any amount paid under that head will be adjusted again the penalty to be paid by the Assessee in terms of the impugned order of the Tribunal - revision petition dismissed.
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