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2019 (8) TMI 753 - HC - VAT and Sales TaxMaintainability of petition - alternative remedy of appeal - violation of the principles of natural justice - unauthorised levy - false purchases and sales or not - HELD THAT:- It is seen from the impugned order that the assessing officer came to the conclusion that the petitioner was guilty of producing false invoices without actual movement of goods. This finding was arrived at by the assessing officer, on the basis of the facts (a) that both the sales and purchase invoices were of the same date, and (b) that there was no actual movement of goods. This factual finding, cannot be assailed before this court. The argument that no penalty would flow out of a false invoice cannot be accepted for the reason that the language employed in section 55(2) of the Act is very clear. Section 55(2) of the Act states that any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of 200 per cent. of tax shown on the false invoice. The expression used in section 55(2) of the Act is "tax shown on the false invoice". Therefore, it is not relatable to the actual turn over but the tax as shown in the false invoice - the contention that so long as the invoices are found to be false, there can be no tax liability and consequently there can be no liability to pay penalty, does not hold good. Imposition of penalty at 400% - contention is that the penalty has now been imposed at 400 per cent., which is more than what is prescribed by statute - HELD THAT:- A reading of the provision shows that the penalty is relatable to every tax invoice. Unfortunately, for the petitioner he has produced two sets of tax invoices, one relating to purchase and another relating to sale. Therefore, every tax invoice attracted a penalty of 200 per cent.,which ultimately, totalled to 400 per cent. Therefore, the said contention is also liable to be rejected. Petition dismissed.
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