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2018 (2) TMI 610 - HC - VAT and Sales TaxPenalty u/s 54(1)(1) of the U.P. VAT Act - delayed deposit of tax - Held that: - It is admitted that the assessee has deposited tax late by two days. It is also not in dispute that on the relevant date when the admitted tax was to be deposited the assessee had no funds available in its bank account. It is, however, not disputed that revisionist had overdraft facilities available and the amount of admitted tax could have been paid from it. The amount of interest payable upon the delayed deposit of admitted tax has been deposited by the revisionist and the interest of State is adequately protected. This Court finds that the assessee was not having liquid funds available in its bank account when the admitted tax was to be deposited. This explanation submitted by the assessee was accepted by the assessing authority and four days time was allowed for the purpose. The assessee in fact had deposited the amount of admitted tax alongwith interest but by a delay of two days. Once the statute itself confers discretion upon the authority concerned and the imposition of penalty is not automatic, the authority concerned is expected to take into consideration relevant facts and circumstances that are placed before it. The exercise of jurisdiction to levy penalty in the facts and circumstances is not proper - revision allowed.
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