https://www.taxtmi.com/caselaws?id=189741 Exemption notifications in tax law are to be strictly construed according to their express terms. Sales in a canteen run by an independent contractor on behalf of an employer did not qualify for exemption under Notification No. 336 dated 17.09.1964, because the notification covered only canteens run by the employer or by employees on a co-operative basis, subject to the stated conditions. The tax levy was therefore upheld. Penalty, however, was discretionary and had to be assessed with reference to the assessee's bona fides. As the authority treated maximum penalty as automatic without independent consideration, the penalty component was set aside and remitted for fresh examination. en-us Fri, 18 Dec 2015 00:00:00 +0530 Wed, 18 Jan 2017 21:00:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189741 Exemption notifications in tax law are to be strictly construed according to their express terms. Sales in a canteen run by an independent contractor on behalf of an employer did not qualify for exemption under Notification No. 336 dated 17.09.1964, because the notification covered only canteens run by the employer or by employees on a co-operative basis, subject to the stated conditions. The tax levy was therefore upheld. Penalty, however, was discretionary and had to be assessed with reference to the assessee's bona fides. As the authority treated maximum penalty as automatic without independent consideration, the penalty component was set aside and remitted for fresh examination. Case-Laws VAT and Sales Tax Fri, 18 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189741