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2016 (12) TMI 370 - GUJARAT HIGH COURTImposition of penalty u/s 45(6) of GVAT Act - exemption u/s 49(2) of the Act - the department could not have levied the penalty after lapse of 9 years is concerned, at the outset, it is required to be noted that as such there is no time limit prescribed under the statute - Held that: - by the delay in initiation of the proceedings and / or imposing the penalty belatedly the assessee is benefited to the extent that the appellant will make the payment of penalty subsequently which otherwise the assessee was required to pay at the time of passing of the assessment order. It is required to be noted that the authority imposed the penalty of 90%, which came to be reduced by the learned Tribunal to 50%. Therefore, even interest of the assessee has also been protected to the aforesaid extent. However, at the same time the appellant may not be saddled with liability to pay the interest on the penalty for the interregnum period and the liability to pay interest on the penalty, if any, shall commence from the date of penalty i.e. in the present case 11.4.2001. To the aforesaid extent, present appeal is required to be partly allowed and the impugned judgment and order passed by the learned Tribunal is required to be modified to the aforesaid extent. The order passed by the competent authority imposing penalty under Section 45(6) of the Act is hereby confirmed, subject to modification of the same to the extent that in the peculiar facts and circumstances of the case, liability to pay interest on the amount of penalty, if any, shall commence from the date of order of penalty i.e. 11.04.2001 only - appeal disposed off
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