Levy of penalty - discrepancy in turnover - requirement of...

Levy of penalty - discrepancy in turnover - requirement of adding gross profit and freight charges to the purchase value - The Madras High Court concluded that the levy of penalty u/s 27(3) of the TNVAT Act was unjustified due to the absence of a finding of willful nondisclosure of assessable turnover. The petitioner acted on the method suggested by enforcement officers, and the discrepancy in turnover did not amount to willful nondisclosure. Consequently, the Court set aside the impugned orders regarding the penalty, while the remaining portions of the assessment orders remained undisturbed.