https://www.taxtmi.com/caselaws?id=359187 Penalty under the Tamil Nadu Value Added Tax Act is not automatic when wrong input tax credit is reversed in assessment based on returns and accounts; the authority must show an attempt to evade tax before invoking Section 27(4). The governing principle is that penal provisions tied to incorrect returns or assessment adjustments cannot be applied mechanically merely because an error in credit is detected. Where the record shows only a tax adjustment and no suppression, deliberate non-disclosure, or other material indicating evasion, penalty should not be sustained. On those facts, the deletion of penalty was upheld. en-us Tue, 20 Mar 2018 00:00:00 +0530 Thu, 31 Jan 2019 14:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359187 Penalty under the Tamil Nadu Value Added Tax Act is not automatic when wrong input tax credit is reversed in assessment based on returns and accounts; the authority must show an attempt to evade tax before invoking Section 27(4). The governing principle is that penal provisions tied to incorrect returns or assessment adjustments cannot be applied mechanically merely because an error in credit is detected. Where the record shows only a tax adjustment and no suppression, deliberate non-disclosure, or other material indicating evasion, penalty should not be sustained. On those facts, the deletion of penalty was upheld. Case-Laws VAT and Sales Tax Tue, 20 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359187