https://www.taxtmi.com/caselaws?id=448269 Penalty under Section 67(1) of the Kerala Value Added Tax Act, 2003 is attracted only where the authority is satisfied that the return is untrue or incorrect and that there is an element of evasion; a mere classification dispute does not justify penal action. Where the assessees adopted the importer-seller's accepted HSN classification for multi-function printers, and the record did not establish wilful misclassification or contumacious intent to evade tax, the classification was treated as bona fide. On those facts, the penalty orders against the reseller petitioners and the importer-seller were unsustainable and were set aside. en-us Tue, 09 Jan 2024 00:00:00 +0530 Mon, 22 Dec 2025 17:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448269 Penalty under Section 67(1) of the Kerala Value Added Tax Act, 2003 is attracted only where the authority is satisfied that the return is untrue or incorrect and that there is an element of evasion; a mere classification dispute does not justify penal action. Where the assessees adopted the importer-seller's accepted HSN classification for multi-function printers, and the record did not establish wilful misclassification or contumacious intent to evade tax, the classification was treated as bona fide. On those facts, the penalty orders against the reseller petitioners and the importer-seller were unsustainable and were set aside. Case-Laws VAT / Sales Tax Tue, 09 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448269