TMI Blog2015 (1) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... ns and, that too, as substantial questions of law in a challenge against the order of the Tribunal, which was rendered in appeals filed by the Department - the attempt to get the matter re-agitated in a case where the departmental appeals were already disposed of, appears to have been highly belated and, at any rate. Effect of amendment u/s 9 of Central Act carried out in 1976 w.e.f. 5.1.1957 – Held that:- in Manganese Ore (India) Ltd. versus The Regional Assistant Commissioner of Sales Tax, Jabalpur [1975 (11) TMI 164 - Supreme Court of India] it has been held that since penalty is a substantive matter and unless the penalty is provided for in the Central Act, no penalty could be levied by virtue of Section 9 of the Central Act, under the State Law but by validating Act the law was amended with effect from 1956 and Section 9 (2A) of the Central Act was inserted - the penalty of the nature, which is imposed would be permissible under the State Law – Relying upon Commissioner of Sales Tax, U.P., Lucknow versus New Central Jute Mills Co. Ltd. [1979 (4) TMI 148 - ALLAHABAD HIGH COURT] thus, after Section 9 (2A) of the Central Act was inserted by the amendment in 1976, there is powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The said orders are challenged separately in Commercial Tax Revision Nos. 21 of 2014 and 22 of 2014, which we are disposing of by this common judgment. 3. We have heard the learned counsel for the revisionist Shri P.R. Mullick and the learned counsel for the Revenue/ Department Shri H.M. Bhatia. 4. The following are the substantial questions of law, which have been raised in Commercial Tax Revision Nos. 8 of 2014 and 9 of 2014:- (a) Whether on facts, law and circumstances of the case, the Hon ble Commercial Tax Tribunal, Dehradun, was legally justified to mechanically enhance the penalty for both the disputed quarters of 2011-2012 2012-2013, from the penalty upheld by Joint Commissioner (Appeals), Commercial Tax, Dehradun for 10% and 5% of the admitted tax liability, to 20% of the admitted tax liability, without going into the reasonable cause for delay in deposit of tax, being financial crisis and slack collection from debtors? (b) Whether on facts, law and circumstances of the case, the Hon ble commercial Tax Tribunal, Dehradun, was legally justified to enhance the penalty @ 20% of the admitted tax liability, without appreciating that the revision had deposited th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax, Meerut versus Rohit Organics (P.) Ltd.). Still further, he would submit that the penalty is imposed on the revisionist under Section 58 of the Act. This is a State Law. There is no provision in the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Act ) for levying penalty on the lines it has been imposed under the State enactment. He drew our attention to Section 9 of the Sales Tax Act and contends that it provides only for levying penalty by the State Authorities invoking the State Act relating to Sales Tax, which may include the VAT Act, for penalties leviable under the Central Act. He drew our attention to the provisions contained under Sections 10 and 10A of the Central Act and pointed out that there is no provision, which enables the State Authority to levy penalty under the Central Enactment in respect of the matter in question. There is no dispute that proceedings in this case relate to the inter-state sales also. Reasonable cause was there. He would submit that the Tribunal, after interfering with the finding of the 1st Appellate Authority on the basis that Section 58 of the Act provides for the minimum and maximum, gave no ground for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return or alongwith the return, it may, after such inquiry as deemed necessary, direct that such dealer or person shall pay, by way of penalty, in addition to the tax, if any, payable by him. 8. The only basis for imposing penalty can only be that there is no sufficient cause. There can be no dispute about that, but once the sufficient cause is not there, then there can be no doubt that there will be no illegality if the minimum is imposed. This would appear to flow from the judgment of the Apex Court, reported in 2009 (238) E.L.T. 3 (S.C.). An attempt was made by the learned counsel for the revisionist to import in considerations which were relevant to the facts of that case, namely, that unless there is fraud, willful mistake or suppression of facts, penalty could not be levied under Section 11AC of the Central Excise Act, 1944, but such a requirement cannot be imported in a case under Section 58 of the VAT Act, as there is no such requirement and we reject such contention of the learned counsel for the revisionist. Under the Uttarakhand VAT Act, there is, undoubtedly, provisions contained in Sections 23(7) 23 (8) of the Act for extension of time to file return. Sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would think that the attempt to get the matter re-agitated in a case where the departmental appeals were already disposed of, appears to have been highly belated and, at any rate, we did not find that there is merit in the substantial question of law raised and those revisions will stand dismissed. 11. Regarding the other question of law, originally under Section 9 of the Central Act till the amendment, which was carried out in 1976 with effect from 5.1.1957, the Apex Court had taken the view in 1976 Vol. 37 STC, 489 (Manganese Ore (India) Ltd. versus The Regional Assistant Commissioner of Sales Tax, Jabalpur) that since penalty is a substantive matter and unless the penalty is provided for in the Central Act, no penalty could be levied by virtue of Section 9 of the Central Act, under the State Law but by validating Act the law was amended with effect from 1956 and Section 9 (2A) of the Central Act was inserted. Section 9 (2A) of the Central Act reads as follows:- 9. Levy and collection of tax and penalties. (2A) All the provisions relating to offences, interest and penalties (including provisions relating to penalties in lieu of prosecution for an offence or in addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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