TaxTMI 
TaxTMI 
2013 (11) TMI 921
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....er as regards the cancellation of penalty made under Section 23 of the Tamil Nadu General Sales Tax Act. 2. The assessment year under consideration is 1988-89. It is seen from the facts narrated that the assessee purchased tyres and tubes during 1988-89 by availing concessional rate of tax under Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959. The purchase of tyres and tubes were used by the assessee as component parts in the manufacture of animal driven vehicles. Holding that the assessee was not entitled to claim concessional rate of tax, as animal driven vehicles were multi-point items, proceedings were initiated to tax the differential rate of tax on the purchase of tyres and tubes. Aggrieved by this, the assessee went on ....
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.... which is identifiable visually or by a mechanical process and not by a chemical process. Thus, overruling the decision reported in (1977) 40 STC 310 (Elgi Equipments Private Limited V. State of Tamil Nadu), this Court upheld that levy of penalty under Section 23 of the Tamil Nadu General Sales Tax Act. Applying the said decision, the Joint Commissioner set aside the order of the Appellate Assistant Commissioner and thus held that for misuse of Form XVII, penalty was leviable under Section 23 of the Tamil Nadu General Sales Tax Act. Thus the suo motu revision proposal to direct the Assessing Officer to initiate fresh proceedings was upheld. Aggrieved by this, the present Tax Case (Appeal) has been filed. 4. Learned counsel appearing for ....
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....ion(3) of section 31-A or by the Deputy Commissioner under sub-section (1) of section 32 or sub-section(3) of section 33 and if such order or proceeding recorded is prejudicial to the interests of the Revenue, after making enquiry or causing such enquiry to be made, initiate proceedings to revise, modify or set aside such order or proceeding and pass orders thereon. The Section, however, cautions that the exercise of power must be subject to the provisions of the Act. 7. In the decision reported in (1970) 26 STC 176 (A.Velayutha Raja V. The Board of Revenue (C.T.) Madras) , the Division Bench of this Court had an occasion to consider Section 34 of the Tamil Nadu General Sales Tax Act as regards the direction issued to reopen the assessme....
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....vy of penalty. Thus, if the assessee had had no grievance as regards the issue raised by the Revenue proposing to levy penalty before the first Appellate Authority, we do not find any inhibition even otherwise on the authority of the Joint Commissioner to invoke his revisional powers to give a direction to the Assessing Officer to invoke penalty in view of Section 23 on the violation of Form XVII. Thus, we reject the prayer of the assessee as to the jurisdiction of the Joint Commissioner under Section 34 of the Tamil Nadu General Sales Tax Act to give such directions to the Assessing Officer as regards initiation of penal proceedings. 9. As far as the reasonable cause or otherwise is concerned, we do not think that at this stage, we shou....