Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 1394 - ORISSA HIGH COURTLevy of Entry Tax - scheduled goods imported from outside the territory of India - Section 3 of the Odisha Entry Tax Act, 1999 - levy of penalty u/s10(2) of the Act - Whether levy under Section 3 of the Odisha Entry Tax Act, 1999 is attracted on scheduled goods imported from outside the territory of India? - HELD THAT:- The issue now stands settled in STATE OF KERALA AND OTHERS VERSUS FR. WILLIAM FERNANDEZ ETC. ETC. [2017 (10) TMI 491 - SUPREME COURT] where it was held that We thus do not find any substance in the submission of the learned counsel for the petitioner that entry tax legislation is not covered by Entry 52 List II. - the Court declines to frame question as urged. Whether in the facts and circumstances of the case levy of penalty U/s.10(2) of the Act is warranted? - HELD THAT:- With the legal position having been settled only in October 2017, most of the Dealers-Assessees were under bona fide impression that Entry Tax would not payable on goods imported into India. Therefore, it could reasonably be contended that till such time there was no willful or deliberate attempt by the Dealer-Assessee to waive payment of Entry Tax. The Court notes that under Section 10 (2) of the OET Act, there is an element of discretion in the Assessing Authority to levy penalty where the escapement or under assessment of tax “is without any reasonable cause.” Since the Court is satisfied that the non-payment of Entry Tax on imported goods by the Petitioner, cannot be said to be without reasonable basis, the Court is of the view that in the present case the levy of penalty was not justified. The question is accordingly answered in the negative i.e., in favour of the Petitioner and against the Department. The impugned Assessment order in so far as it imposes penalty on the Petitioner is hereby set aside - Revision petition allowed.
|