9911796707
TMI Blog2015 (11) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1959. 3.1 According to the petitioner, the petitioner, being an exporter of hides and skins is a registered dealer under the provisions of the Act. For the export made by it, the Union of India, grants incentives in the form of refund of the customs duties, which is paid by it and the same is credited to the accounts of the exporter from time to time. The account of the exporter is called as "Duty Entitlement Pass Book" (shortly DEPB). Since the petitioner's turnover for the year related to export, it was granted the refund of customs duty in its account called DEPB. 3.2 According to the petitioner, since the issue as to whether such DEPB are goods and transfer of such DEPB is liable to sales tax under the Act was settled by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner, the proposal was made. 3.5 Further, according to the petitioner, the respondent initiated the re-assessment proceedings only for the purpose of imposition of penalty under Section 16(2) of the Act at 150% of the tax due and not for the tax which was already paid by the petitioner even before the initiation of the assessment proceedings. 3.6 On receipt of the said notice, according to the petitioner, they have filed detailed objections on 19.06.2003 inviting the attention of the respondent that penalty is not warranted by quoting the decisions of this Court reported in 38 STC 382 in the case of Deputy Commissioner of Commercial Taxes vs S.R.Ramaswami Chettiar and Bros., since the section contemplates that under Section 16(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Apex Court in the case reported in 28 STC 700 (The State of Madras vs. S.G.Jayaraj Nadar and Sons) has held that where certain items which are not included in the turnover are discovered from the dealer's own account books and the assessing authority includes these items in the dealer's turnover, the assessment cannot be regarded as based on best judgment and penalty cannot be levied in respect of such items. As far as the case in hand is concerned, when there is no intention for evading of payment of tax and when the entire turnover is very much reflected in the books of accounts, there is no reason for levying penalty. This Court in the case reported in 125 STC 505 (Appollo Saline Pharmaceuticals (P) Ltd., vs. Commer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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