TaxTMI 
TaxTMI 
2013 (7) TMI 154
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....en though, the order sheet in T.C.(R)Nos.6 and 7 of 2013 contains the question of law that related to levy of penalty, we find that the same relates to the denial of the claim for concessional levy; that the 'C' forms produced by the assessee were bogus and consequently, the question of concessional levy did not arise. Hence, the correct question of law to be considered by this Court are as follows: "1. Whether the Tribunal is correct in concluding that the petitioner has colluded with the buyers and obtained C forms to avail the concessional rate in the absence of specific finding of the assessing officer? 2. Whether the Tribunal is correct in concluding that the payment of tax made by the petitioner under protest doubted the....
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....ere was no need to interfere with the order of the Appellate Assistant Commissioner on the facts found by the Revenue that the 'C' Forms were bogus and the liability of the assessee to pay higher rate of tax was there under the provisions of the Act; consequently, the Tribunal confirmed the assessment. Aggrieved by this, Tax Case (Revision) Nos.6 and 7 of 2013 have been filed. 4. Apart from these two revisions, there are two other revisions, viz., T.C.(R)Nos.8 and 9 of 2013 by the assessee raising the following questions of law: "1. Whether the Tribunal is correcting in remanding the appeal filed by the Revenue, when the Revenue has not raised any ground with regard to levy of penalty under Section 10(3) of Act I of 1959? 2....
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....adu General Sales Tax Act. Hence, the present revisions have been filed. 7. As far as Tax Case (Revision) Nos.6 and 7 of 2013 are concerned, we do not find any justifiable ground to disturb the assessment, since in the absence of valid 'C' Forms, their assessment was rightly made. Consequently, both the revisions are dismissed. No costs. 8. As far as the levy of penalty is concerned, a reading of the order of the Tribunal restoring penalty proceedings shows that the notice under Section 16 of the Tamil Nadu General Sales Tax Act proposed levy of tax at 16.8% and penalty under Section 16(2) of the Tamil Nadu General Sales Tax Act read with Section 9(2-A) of the Central Sales Tax Act at 150% of the tax due for the wilful submiss....
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....vision under Section 16 to cover cases under Section 16(1)(b), we have no hesitation in setting aside the order of penalty. 10. As far as the Tribunal's view invoking Section 10(3) of the Tamil Nadu General Sales Tax Act is concerned, the assessee claimed concessional levy on the basis of the declaration forms furnished by the outstation purchaser. Given the degree of knowledge that an assessee may have, as to whether the concessional forms were bogus or genuine, we do not find any justifiable ground to attribute motive to levy penalty in this case. 11. Learned Standing Counsel appearing for the Revenue pointed out that the 'C' Forms were all written in hand by the outstation purchaser in the same pattern. There was no off....
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.... Assessing Officer must establish a knowledge on the part of the assessee that he had produced the false certificate with a view to support that the transaction of sale is liable to be taxed at a lower rate. Such levy of penalty is permissible only after giving the assessee a chance of hearing in that matter. If the Tribunal feels that it is a fit case for levy of penalty under Section 10(3) read with Section 9(2) and that an order had been made quoting a wrong provision, then notice proposing levy of penalty must contain the materials, which would lead the Tribunal to come to a conclusion that it is only a misquoting of the provision of the Act, which called for correction at the hands of the Tribunal. As already pointed out, the show caus....