2009 (12) TMI 879 - HC - VAT and Sales Tax

Tribunal affirms penalty deletion for oil-seeds dealer under tax law

State of Tamil Nadu Versus Lingam and Company

The Tribunal upheld the deletion of penalty in a case involving a dealer in oil-seeds, oil, and oil cakes for the assessment year 1990-91. The revision ... - Issues involved: Revision filed by Revenue against Sales Tax Appellate Tribunal's order regarding penalty deletion for assessment year 1990-91.Summary:The respondent, a dealer in oil-seeds, oil, and oil cakes, underwent a revised assessment for the year 1990-91 due to a reported stock deficiency during an inspection. The assessing officer revised the assessment based on the enforcement officers' report, leading to additional tax and penalty imposition. The assessee appealed and obtained relief on penalty deletion and equal addition. The Revenue filed a revision challenging the deletion of penalty.The first appellate authority and the Tribunal found that the penalty deletion was justified as there was no evidence of mens rea or blameworthy conduct by the assessee. The authorities correctly applied the provision of section 16(2) of the Tamil Nadu General Sales Tax Act, 1959, which requires mens rea for penalty imposition. Since no wilful non-disclosure of taxable turnover was found, the penalty deletion was upheld. The Tribunal dismissed the Revenue's revision, affirming the deletion of penalty as per the legal requirements under the Act.In conclusion, the deletion of penalty was deemed appropriate as there was no evidence of wilful non-disclosure of taxable turnover by the assessee, aligning with the provisions of section 16(2) of the Tamil Nadu General Sales Tax Act, 1959. The appeal filed by the Revenue was dismissed based on the lack of grounds for penalty imposition.