https://www.taxtmi.com/caselaws?id=33874 Section 72(1) of the Karnataka Value Added Tax Act, 2003 imposed a fixed daily penalty and an additional percentage-based penalty for delay in filing returns or paying admitted tax. The Karnataka High Court found that this rigid scheme disregarded the cause and duration of delay, the dealer's circumstances, and the compensatory nature of fiscal enforcement, making it arbitrary and disproportionate under Article 14 and an unreasonable restriction on business under Article 19(1)(g). It also held that a penalty with confiscatory effect exceeded the State's ancillary taxing power under Entry 54 of List II. Reading down was rejected, and the penalty provision and consequential notices were treated as unconstitutional. en-us Fri, 02 Jan 2009 00:00:00 +0530 Wed, 09 Apr 2014 12:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33874 Section 72(1) of the Karnataka Value Added Tax Act, 2003 imposed a fixed daily penalty and an additional percentage-based penalty for delay in filing returns or paying admitted tax. The Karnataka High Court found that this rigid scheme disregarded the cause and duration of delay, the dealer's circumstances, and the compensatory nature of fiscal enforcement, making it arbitrary and disproportionate under Article 14 and an unreasonable restriction on business under Article 19(1)(g). It also held that a penalty with confiscatory effect exceeded the State's ancillary taxing power under Entry 54 of List II. Reading down was rejected, and the penalty provision and consequential notices were treated as unconstitutional. Case-Laws VAT and Sales Tax Fri, 02 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33874