https://www.taxtmi.com/caselaws?id=156577 Penalty for non-payment of sales tax could not stand where the relevant legal position for the assessment year was that meals served in hotels and restaurants were not taxable. The dealer's returns may have shown a liability, but once the underlying sales tax was not legally due, there was no existing tax default on which penalty could be computed or imposed. The penalty was therefore unsustainable, and deletion of the penalty was upheld in favour of the dealer. en-us Tue, 11 Feb 1992 00:00:00 +0530 Sat, 21 Sep 2013 17:36:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156577 Penalty for non-payment of sales tax could not stand where the relevant legal position for the assessment year was that meals served in hotels and restaurants were not taxable. The dealer's returns may have shown a liability, but once the underlying sales tax was not legally due, there was no existing tax default on which penalty could be computed or imposed. The penalty was therefore unsustainable, and deletion of the penalty was upheld in favour of the dealer. Case-Laws VAT and Sales Tax Tue, 11 Feb 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156577