TMI Blog2019 (3) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... icer 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 proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered under the sales tax enactment. The issue had been addressed by this Court in various decisions, against the hospitals and after the decision of the Honourable Supreme Court in (2006) 3 SCC 1 [Bharat Sanchar Nigam Ltd. Another v. Union of India and Others], there was an altogether different view taken by the various High Courts in the Country. But this Court followed its earlier judgments. A Division Bench of this very Court then doubted the earlier judgments and referred it for consideration to a Larger Bench. The Full Bench has now answered the question in favour of the hospitals and against the Revenue, insofar as the supply of drugs, consumables and implants in the course of medical treatment to the patients; bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to satisfy tax liability. The assessee is said to have taken time to produce the accounts, but however, did not do so. Hence, a notice was issued proposing to impose penalty of ₹ 10,000/-. The penalty imposed is only on the ground of failure to comply with the summons issued by the department. 5. The learned Senior Government Pleader points out clauses (a), (e) and (g) of Section 45A to argue that the assessee had the responsibility to take out registration under the Act and had failed to comply with the notice for production of books of accounts and had also acted in contravention of the provisions of the Act and the Kerala General Sales Tax Rules, 1963 ( Rules for brevity) for reason of having not taken out registration and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were on the question on evasion of tax, wherein definitely a deliberate intention is required. 8. When there is a violation of a civil obligation, statutorily cast on the assessee, like in the case of a failure to file returns; then without any thing more or a mental element there can be imposition of penalty under Section 45A. However, we are impressed by the argument of the learned counsel for the respondent that there was no malafide intention or an attempt to evade tax in the present case, since the issue of registration and the exigibility to tax for drugs administered in hospitals, was debatable and was pending before various courts in the Country. The matter having attained finality by the judgment of the Honoruable Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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