https://www.taxtmi.com/caselaws?id=763358 The HC quashed penalty levied under Section 10(d) of CST Act, ruling that mens rea must be established for penalty imposition. The court held that penalty provisions in fiscal statutes require interpretation based on statutory language, and where penalty depends on specific factors, those conditions must be satisfied. Following SC precedent in Commissioner of Sales Tax v. Sanjiv Fabrics, the court found that reasonable cause defense was validly established through engineer's certificate. Since necessary ingredients for penalty levy were neither alleged nor proved by the department, the penalty order was unjustified and quashed in favor of the assessee. en-us Thu, 05 Dec 2024 00:00:00 +0530 Thu, 19 Dec 2024 08:47:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763358 The HC quashed penalty levied under Section 10(d) of CST Act, ruling that mens rea must be established for penalty imposition. The court held that penalty provisions in fiscal statutes require interpretation based on statutory language, and where penalty depends on specific factors, those conditions must be satisfied. Following SC precedent in Commissioner of Sales Tax v. Sanjiv Fabrics, the court found that reasonable cause defense was validly established through engineer's certificate. Since necessary ingredients for penalty levy were neither alleged nor proved by the department, the penalty order was unjustified and quashed in favor of the assessee. Case-Laws VAT / Sales Tax Thu, 05 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763358