https://www.taxtmi.com/caselaws?id=360769 Section 12(7) of the Gujarat Value Added Tax Act confers discretion on the Commissioner both to decide whether penalty should be imposed for wrongly claimed excess tax credit and, if so, to determine the quantum within the statutory ceiling. The use of "may" shows that penalty is not mandatory merely because excess credit is found, and the provision fixes only an upper limit of twice the amount of tax credit so claimed. Reading the provision as requiring maximum penalty once imposed would weaken the discretion and produce an incongruent result not supported by the text. The Commissioner therefore may impose no penalty or any lesser penalty up to the prescribed maximum. en-us Fri, 09 Mar 2018 00:00:00 +0530 Wed, 23 May 2018 07:39:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360769 Section 12(7) of the Gujarat Value Added Tax Act confers discretion on the Commissioner both to decide whether penalty should be imposed for wrongly claimed excess tax credit and, if so, to determine the quantum within the statutory ceiling. The use of "may" shows that penalty is not mandatory merely because excess credit is found, and the provision fixes only an upper limit of twice the amount of tax credit so claimed. Reading the provision as requiring maximum penalty once imposed would weaken the discretion and produce an incongruent result not supported by the text. The Commissioner therefore may impose no penalty or any lesser penalty up to the prescribed maximum. Case-Laws VAT and Sales Tax Fri, 09 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360769