https://www.taxtmi.com/caselaws?id=187542 Penalty under Section 67 of the Kerala Value Added Tax Act, 2003 cannot be sustained where the dispute concerns only the classification of goods and the assessee has disclosed the turnover in its books and returns. The provision applies only when the material shows attempted evasion or other culpable conduct; a bona fide and debatable view on whether an item falls under a taxable or exempt entry does not by itself establish mens rea or contumacious conduct. In such cases, classification may be determined in assessment proceedings, but the penalty machinery is not attracted merely because exemption was claimed on an arguable understanding of the entry. en-us Mon, 16 Jun 2014 00:00:00 +0530 Wed, 26 Oct 2016 10:19:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187542 Penalty under Section 67 of the Kerala Value Added Tax Act, 2003 cannot be sustained where the dispute concerns only the classification of goods and the assessee has disclosed the turnover in its books and returns. The provision applies only when the material shows attempted evasion or other culpable conduct; a bona fide and debatable view on whether an item falls under a taxable or exempt entry does not by itself establish mens rea or contumacious conduct. In such cases, classification may be determined in assessment proceedings, but the penalty machinery is not attracted merely because exemption was claimed on an arguable understanding of the entry. Case-Laws VAT and Sales Tax Mon, 16 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187542