https://www.taxtmi.com/caselaws?id=164781 Penalty for failure to produce endorsed transit declaration documents under the West Bengal Sales Tax Act was held not to be sustainable in full where the goods were proved to have moved in the course of export and no real possibility of tax evasion or revenue loss was shown. The commentary states that the penalty power under section 72(6) cannot be exercised mechanically: a mere procedural lapse or negligence does not justify full penal consequences unless the contravention creates an actual or potential revenue impact. In such circumstances, an arbitrary penalty would be inconsistent with Article 14, though a reduced deterrent amount may be retained. en-us Fri, 18 Jan 2008 00:00:00 +0530 Wed, 30 Apr 2014 15:33:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164781 Penalty for failure to produce endorsed transit declaration documents under the West Bengal Sales Tax Act was held not to be sustainable in full where the goods were proved to have moved in the course of export and no real possibility of tax evasion or revenue loss was shown. The commentary states that the penalty power under section 72(6) cannot be exercised mechanically: a mere procedural lapse or negligence does not justify full penal consequences unless the contravention creates an actual or potential revenue impact. In such circumstances, an arbitrary penalty would be inconsistent with Article 14, though a reduced deterrent amount may be retained. Case-Laws VAT and Sales Tax Fri, 18 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164781