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2015 (10) TMI 216 - HC - VAT and Sales TaxLevy of penalty under section 15A(1)(a) of the U.P. Trade Tax Act, 1948 - delayed deposit of trade tax/Central sales tax - Whether, on the facts of the case, the Tribunal is legally justified in confirming the penalty under section 15A(1)(a) of the Act - Held that:- specific grounds were taken by the applicant with complete disclosure of facts before the appellate authority that the bank draft/pay order for the tax amount was deposited well within time in the SBI which was collected by the SBI after two or three days which allegedly caused delay of two or three days as evident from the facts mentioned in the grounds of appeal as well as in the written submission filed before the first appellate authority and before the Tribunal - payment of cheque is a recognised mode of payment of sales tax dues. Now question arises that what is the date of payment, when the cheque was given to the Department or the date on which it was encashed. Payment by cheque realised subsequently on the cheque being honoured and encashed relates back to the date of the receipt of the cheque, and in law the date of payment is the date of delivery of the cheque. Applicants have clearly mentioned the date of respective bank draft/pay order/cheque and the date of deposit thereof along with challan form in the SBI which facts have not been disputed or denied by the assessing authority. It cannot be said that there was any delay. Even according to the respondents, there was delay of only two or three days. The same was properly explained by the applicant. There was no occasion before the assessing authority to levy penalty for alleged delay in deposit of tax for the relevant months - Decided in favour of assessee.
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