TMI Blog2019 (8) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... ent 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 liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of natural justice ; and (2) that the levy is unauthorized by law. 4. But, it appears from the impugned order that the petitioner was given adequate opportunity, both to show cause against the proposal and to appear personally and advance arguments. The contention of Mr. M.V.J.K. Kumar, learned counsel for the petitioner is that several serious contentious issues raised by the petitioner in their reply were simply extracted in the impugned order, but were not discussed. This is how the ground of violation of principles of natural justice is sought to be projected. 5. It is true that the assessing officer has extracted the entire objections by copying and pasting them in the impugned order, but he did not stop with that. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty 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. Hence, 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. From out of a false invoice no tax liability may arise but liability to pay penalty may arise under section 55(2) of the Act. Therefore, the first contention is liable to be rejected. 9. The second contention is that the penalty has now been imposed at 400 per cent., which is more than what is prescribed by statute. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
