https://www.taxtmi.com/caselaws?id=357274 Section 40(2) of the Tamil Nadu VAT Act could not be invoked where the dealer had not collected any tax and the deduction was made by the contractee under the TDS mechanism in Section 13. The statutory scheme provided for deduction and refund of TDS amounts, subject to adjustment of any arrears, and once the underlying works contract was accepted as exempt, the retained amount had to be refunded. Penalty for illegal collection was therefore inapplicable because Section 40(2) presupposes collection in contravention of Section 40(1) and a corresponding opportunity of hearing. The adjustment of TDS towards penalty was impermissible. en-us Thu, 25 Jan 2018 00:00:00 +0530 Wed, 21 Mar 2018 08:26:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357274 Section 40(2) of the Tamil Nadu VAT Act could not be invoked where the dealer had not collected any tax and the deduction was made by the contractee under the TDS mechanism in Section 13. The statutory scheme provided for deduction and refund of TDS amounts, subject to adjustment of any arrears, and once the underlying works contract was accepted as exempt, the retained amount had to be refunded. Penalty for illegal collection was therefore inapplicable because Section 40(2) presupposes collection in contravention of Section 40(1) and a corresponding opportunity of hearing. The adjustment of TDS towards penalty was impermissible. Case-Laws VAT and Sales Tax Thu, 25 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357274