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TMI Blog2019 (12) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee during the assessment period. 2. The reasons assigned by the learned Tribunal in the impugned order for setting aside the said penalty are quoted below for ready reference. "14. It is further argued by the counsel for the respondent that, as the assessability of the transaction was in doubt and the assessees bonafide believed that, the transactions were liable for sales tax on the sales turnover of REP licence and therefore not reported in the returns and therefore penalty levied under Section 12(5)(iii) is not at all correct. It is also further argued by the counsel for the respondent that, it is not as if for the year 1992/93 penalty under Section 12(5)(iii) for not reporting the turnover relating to REP license and non-payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent that, it is not the case that the assessing authority that the returns filed by the respondent are incorrect and incomplete because during that period of time that there was some confusion prevailing as to the nature of goods and the eligible of sales tax on the same. It is further argued by the counsel for the respondent that, when the turnover relating to REP scrips is available in the books of accounts and the respondent are under a bonafide impression that the same were not taxable and so they did not report the same in the returns and pay the taxes. But, however, after the decision of the Supreme Court, when the respondent paid the taxes on the sales of REP licence penalty imposed paid the taxes on the sales of REP licence pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty especially whether the goods are assessable (involved in the turnover) is doubtful and thereby, the first appellate authority, as already stated, had set aside the penalty imposed under Section 12(5)(iii), which in our opinion is in order. Viewed this from any angle, we are of the unanimous opinion that, the stand taken by the first appellate authority in setting aside the levy of penalty portion under Section 12(5)(iii) is in order and therefore, we see no grounds to interfere with this findings in that regard. The point is accordingly answered." 3. Learned counsel for the State Mr.Shafiq submitted that the controversy with regard to the leviability of sales tax on the sales of REP licence was in the state of confusion and by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be at liberty to pursue their statutory remedies of appeal/revision and the computation and counting of the statutory period of limitation prescribed therefor shall commence from this date and the appellate/revisional authorities shall entertain such appeals, if any filed, in accordance with law and deal with them on merits of the contentions raised; (e) The levy of penalty under S e ction 12 o r 16 of the TNGST Act, 1959, shall be available to the assessing authorities in these categories of cases on and from assessment years 1992-93 onwards, and the authorities shall be at liberty to do so having regard to the facts and circumstances of each case on its own merits; (f) Subject to the declaration of law as above and directions con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at period. The Madras High Court on the basis of the fact that a precedent from Karnataka High Court in this regard was available in the year 1992 itself held that authorities could invoke penal provisions under Section 12 or 16 only from Assessment Year 1992-93 onwards. Learned counsel for the State submits that the order of the learned Single Judge of the Karnataka High Court was dated 08.10.1991 and the order of the Division Bench was dated 16.04.1992. He therefore submitted that the learned assessing authority cannot be faulted with in invoking the provisions of Section 12(5)(iii) for Assessment Year 1992-93. 7. Having considered the submissions made by the counsel for Revenue, we are however not inclined to accept his submissions. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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