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2017 (2) TMI 960 - MADRAS HIGH COURTTime limitation - Levy of penalty u/s 22(2) of the TNGST Act 1959 - the tax was collected by the petitioner and not paid to the Department - whether the impugned order reviewing the penalty on the petitioner for the assessment year 1995-96 is barred by limitation within the meaning of proviso to sub section 2 of the 22 of the TNGST Act? - Held that: - this Court does not agree with the said argument advanced on behalf of the respondent that the five years limitation would start only from 22.02.2006, where appeal filed by the department was dismissed by the Sales Tax Appellate Tribunal. When section 22(2) is invoked and by which, the present impugned order has been passed levying penalty against the petitioner, certainly, the limitation point raised therein under the proviso, which has been subsequently inserted in the year 2004 shall be taken into account and the same can be treated as a mandatory one - the present order, which is impugned herein, since admittedly, initiated and passed only after the limitation period of five years ie., on 09.03.2010 and ended on 16.07.2010, whereas the limitation was over on 31.03.2011 itself for the purpose of assessment year 1995-96. Therefore, this Court has no hesitation to hold that the impugned order is not sustainable because of the limitation provided as per Section 22(2) proviso. Petition allowed - decided in favor of petitioner.
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