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2019 (3) TMI 708 - HC - VAT and Sales TaxImposition of penalty - whether there could be a penalty imposed under Section 45A of the Kerala General Sales Tax Act, 1963, for reason of not responding to the summons issued by the Department? - Held that:- The proposal for penalty was not for reason of non-registration of the hospital as is the defect under clause (a) of Section 45A. The failure to comply with the terms of notices or summons issued to a dealer could be a cause for imposition of penalty only in the context of a person who is covered under the enactment; which the respondent claimed it was not liable. The Assessing Officer did not pass any order holding the respondent to be so liable. Hence, there could also be no violation found of Section 45A(e). The said reasoning applies to clause (g) also. For finding of contravention of the provisions of the Act or the Rules made thereunder, first it has to be decided as to whether hospitals are to be registered under the sales tax enactment or not. Issuance of summons to a dealer, who has not registered, for production of books of accounts and a failure to respond to the same, cannot lead to a penalty proceedings under Section 45A. If notice or summons has not been responded to, then, the Assessing Officer could decide the issue of registration as also failure to comply with the provisions of the Act in a proceeding in which best judgment assessment could also be made for estimation of the tax liability of a dealer, who is not so registered under the Act but is liable for registration. The question of law answered in favor of the assessee and against the Revenue.
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