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2018 (2) TMI 1908 - HC - VAT and Sales TaxWaiver of penalty - Demand of security deposit on detention of goods - whether the Tribunal was right in deleting the penalty imposed on the ground that there was no evasion of tax since the transaction was reflected in the accounts? - HELD THAT:- Sub-section (6) of section 47 enables imposition of penalty only if there is evasion of tax - In the present case, we find that by annexure A, there is no explicit finding but however, it can easily be inferred that the imposition of penalty was on account of there being no delivery note accompanying the transport which was a clear attempt to evade tax. We, hence, do not find any reason to accept the claim of the assessee. There has been an estimation made of the value of the goods to demand security deposit. This is without any basis. The invoice accompanying the transport showed the value of ₹ 78,000. Hence, the evasion would be only with respect to the tax element as per the invoice. Computation of tax being possible, the penalty imposed has to be confined to maximum of twice the amount of tax sought to be evaded. Revision allowed.
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