Karnataka High Court: Penalty Waived for Assessee in Stock Transfer Case

The High Court of Karnataka dismissed the revenue's appeal against the setting aside of a penalty imposed on the assessee. The penalty was waived as duty with interest was paid, and no fraud or suppression was involved due to stock transfer of goods. The court reiterated that penalties are not automatic and can only be imposed under specific circumstances.

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The High Court of Karnataka dismissed the appeal by the revenue challenging the setting aside of a penalty imposed on the assessee. The penalty was set aside because duty with interest was paid, and there was no fraud or suppression as the goods were transferred by stock transfer. The court emphasized that penalty is not automatic and can only be levied if specific conditions are met.

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