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of <h1>High Court Upholds Tribunal Decision on Cement Company's Tax Penalty Appeal</h1> <h3>The State Of Andhra Pradesh Versus M/s. Priyadarshini Cement Limited</h3> The State Of Andhra Pradesh Versus M/s. Priyadarshini Cement Limited - TMI Issues involved:The judgment involves the issue of penalty for delayed payment of tax under section 15(4) of the APGST Act, 1957, and the authority's discretion in levying penalties based on the circumstances of each case.Detailed Summary:Issue 1: Penalty for delayed payment of tax under section 15(4) of the APGST Act, 1957The revision cases involved a common assessee and the same grounds of revision, leading to a common order. The respondent, a cement manufacturing company, faced penalty proceedings for delayed tax payment from May 2002 to October 2002. The Assessing Authority proposed a penalty of Rs. 41,32,466 due to the delayed payment, rejecting the company's financial difficulties as a valid reason. The Appellate Deputy Commissioner (CT) allowed the appeal, stating that section 15(4) cannot be applied for short delays of 5 to 10 days. However, the Additional Commissioner (CT) revised the order, reinstating the penalty. The Sales Tax Appellate Tribunal later allowed the respondent's appeal, considering the financial circumstances and reasons for the delay in payment.Issue 2: Authority's discretion in levying penalties based on circumstancesDuring the proceedings, the Senior Standing Counsel for the petitioner argued that penalties should be levied to prevent delayed tax payments, emphasizing the quasi-judicial duty of the assessing authority. The respondent's Senior Counsel highlighted the company's regular tax payments, financial difficulties leading to delays, and efforts to restructure debts. The Appellate Tribunal's detailed reasoning, citing legal precedents, emphasized the need for a case-by-case examination before imposing penalties under section 15(4) of the APGST Act. The Tribunal's wide powers under Section 21(4) allowed for a thorough review of the circumstances leading to delayed payments and the validity of penalty imposition.Conclusion:The High Court held that the Sales Tax Appellate Tribunal's detailed reasoning and consideration of the circumstances justified the decision to allow the respondent's appeal. The Court found no grounds to interfere with the Tribunal's order, dismissing the revisions and upholding the Tribunal's decision.
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