https://www.taxtmi.com/caselaws?id=272154 Penalty under the KVAT regime cannot be imposed mechanically: liability under Section 72(2) depends on proof of understatement of tax liability in the return, and a disclosed input tax credit claim that had been accepted earlier did not establish that element. The penalty was therefore set aside and remanded for fresh consideration. Interest under Section 36(1), however, is compensatory and applies to tax found payable; on the facts stated, the interest levy was within the statutory scope and was sustained. en-us Wed, 03 Feb 2016 00:00:00 +0530 Tue, 17 Jan 2017 16:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272154 Penalty under the KVAT regime cannot be imposed mechanically: liability under Section 72(2) depends on proof of understatement of tax liability in the return, and a disclosed input tax credit claim that had been accepted earlier did not establish that element. The penalty was therefore set aside and remanded for fresh consideration. Interest under Section 36(1), however, is compensatory and applies to tax found payable; on the facts stated, the interest levy was within the statutory scope and was sustained. Case-Laws VAT and Sales Tax Wed, 03 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272154