TMI Blog2022 (6) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial transaction, which in the said case was falling within the ambit Section 6-B (1) of Karnataka Sales Tax Act, 1957 - In fact, if the opening paragraph of the aforesaid judgement is taken into consideration, it was an aspect, where the charging Section was under consideration. The charging section, was pertaining to the charging of tax on the basis of the turnover of the assessee. The scope of its interpretation has been limited only, qua applicability of the charging section; because of the economic superiority, which has been vested with the revenue for incorporation of a charging section. But here, since the issue involved is not factually akin to the one, which has been settled by the Hon ble Apex Court in the case of Achal Indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner was dismissed, and consequently, affirming the imposition of the penalty, as it has been imposed by respondent No.3; by the impugned order dated 20th August, 2019, to the tune of Rs. 6,84,000/-. 2. It has been argued by the learned Senior Counsel for the petitioner, that if the impugned order itself is taken into consideration, and particularly, the details, which had been provided therein, the only reason which has been assigned for invocation of Section 129, had arisen because of the fact, that in the description of the invoice, the petitioner had escaped to refer the alphabetical figures, which was given therein, i.e. SAI/V235, but so far as other details required in the invoice document are concerned, pertaining to the tax invo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the judgment except for the description of the waybill number, but the other statistics provided therein commensurated to the documentation of the tax invoice, which was submitted by the petitioner, as already observed above. 6. It has been argued by the learned Senior Counsel for the petitioner, that the wrongful incorporation of the tax invoice number as to be 235 , only, was never with an intention to deceive the State with the revenue, but rather it was a human error, which has inadvertently chanced, and which deserves to be ratified by invoking of provisions contained in the Circular No. 64//38/2018-GST/Dated 14th September, 2018, wherein, it had provided that if during the course of investigation of a vehicle, carrying the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be rationally and logically construed and when the revenue was conscious, that a minor error may creep in while furnishing the e-way bill and those minor discrepancies are to be overlooked and Section 129, is not to be even invoked invariably, under all the circumstances, where it does not affect the financial implications or the liabilities, which has to be fastened upon the assessee under the Taxing Laws. 9. The Sub-clauses referred therein to Clause 5, has to be rationally construed and once the exception of mistake is considered to be excused under Clause 5 of the Circular of 14th September, 2018, and looking to the nature of the error, which has crept in, in the instant case, I am of the view, that since it was not backed with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting taxing statutes. In construing penal statutes and taxation statutes, the Court has to apply strict rule of interpretation and this is what has been considered by this Court in Commissioner of Customs Vs. Dilip Kumar and Company and Others 2018(9) SCC 1, in para 24 and 34 as under: 24. In construing penal statutes and taxation statutes, the Court has to apply strict rule of interpretation. The penal statute which tends to deprive a person of right to life and liberty has to be given strict interpretation or else many innocents might become victims of discretionary decision making. Insofar as taxation statutes are concerned, Article 265 of the Constitution prohibits the State from extracting tax from the citizens without authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interpretation is given to the subject and there is nothing unjust in a taxpayer escaping if the letter of the law fails to catch him on account of the legislature's failure to express itself clearly. 11. In fact, if the opening paragraph of the aforesaid judgement is taken into consideration, it was an aspect, where the charging Section was under consideration. The charging section, was pertaining to the charging of tax on the basis of the turnover of the assessee. 12. The scope of its interpretation has been limited only, qua applicability of the charging section; because of the economic superiority, which has been vested with the revenue for incorporation of a charging section. But here, since the issue involved is not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
