TMI Blog2019 (5) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court - there is no question that the legal representatives are, and have admitted liability to the penalty levied. There is no question that the legal heirs of Mr.Abdul Gafoor are liable to defray the penalties that has been imposed upon him by the Commercial Tax Authorities. However, the present order is only addressed to the Firm and Partners who cannot be held liable for the arrears of the sole proprietorship. The impugned demand notice thus fails and is set aside - It is made clear that the Department is at liberty to recover the amounts from the legal heirs of Mr.Abdul Gafoor, in accordance with law. The impugned order contains a fatal flaw insofar as it is addressed to the petitioner Firm and one of its partner, both not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Petroleum products in Mahe. The business had, earlier, been carried on by an individual by name Mr.K.M.Abdul Gafoor, being the father of the 2nd petitioner. The turnover from the aforesaid business was being assessed under the provisions of the Puducherry General Sales Tax Act, 2017 (in short 'PGST') and the Puducherry Value Added Tax Act, 2007 (in short 'PVAT') regularly. The said individual passed away on 28.08.2009. It was only at that juncture that the petitioners came to be aware of certain proceedings that had been initiated by the Commercial Tax Authorities in respect of arrears of sales tax and penalty for the periods 2006-07, 2007-08 (PGST), 2007-08 2008-09 (PVAT). 3. Four assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression of turnover and to discourage the dishonest act of tax evasion. While so, reducing the penalty amount will result in encouragement of tax evasion and the tax payers will indulge in similare act of evasion on the pretext that he can able to avoid penalty burden. (iv) Whether the Learned presiding officer failed to consider that once the respondent/assessee herein prefers to admit the assessment amount arrived based on suppressed turnover, he cannot escape the penalty which is a penal provisions incorporated to prevent the dishonest act of tax evasion. (v) Whether in the absence of any reliable documentary evidence the Learned presiding officer was right in reducing penalty amount as the reasonin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus the exclusion of 'penalty' in Section 29 is conscious. 7. Per contra, Ms.Mala, learned Additional Government Pleader (Pondy) for the respondents, refers to the provisions of Section 38 of the Act, that states that any penalty payable under this Act shall be deemed to be 'taxes' for the purposes of collection and recovery. 8. Be that as it may, the facts and circumstances of the present case, do not warrant an interpretation of, or adjudication upon the legal submissions made as aforesaid, simply for the reason that the legal representatives of the deceased sole Proprietor have consciously taken it upon themselves to defray the arrears of penalty for the periods in question by carrying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heirs of Mr.Abdul Gafoor, in accordance with law. 10. The second limb of the prayer raised by the petitioner deals with the refusal of the respondents to permit the first petitioner to download C Forms that are required for the conduct of business in order to avail concessional rate of tax. Reliance is placed on section 43 of the Act by Ms.Mala, as follows: ' 43. Withholding issue of statutory forms and seizure of goods. 1) Notwithstanding that any recovery proceedings initiated under this Act, the Assessing Officers or any other officers authorised in this regard shall have power to withhold issue of statutory or other declarations forms to a dealer from whom any tax or penalty, int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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