TaxTMI 
TaxTMI 
2014 (1) TMI 1426
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.....94,149,146, 148 and 173 of 2005 for the assessment years 1997-98, 1998-99, 1999-2000,2000-2001 and 2001-2002 respectively, raising the following questions of law:- 1. Whether in view of Section 4(2) of the Entry Tax Act, the Entry Tax paid by the petitioners did not form part of their taxable turnover? 2. Whether in view of the clarification issued by the Principal Commissioner and Commissioner of Commercial Taxes, in K.Dis.Act.Cell/IV/29951/1993 dated 13.05.1993, the Hon'ble Tribunal has erred in confirming liability to pay tax by the petitioners? 3. Whether the Hon'ble Tribunal has erred in confirming the imposition of penalty under Section 16(2) of the erstwhile Tamil Nadu General Sales Tax Act, 1959? 4. Whether the Hon'....
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....Nadu attracted entry tax under the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. The assessee effected inter-State purchases and also paid the applicable entry tax at the rate of 13% on the purchase value under the Entry Tax Act. Returns, were also filed under the said Act. In the original order of assessment dated 27.09.1999, which provided a set-off to the entry tax already paid by the assessee in terms of Section 4(1) of the Entry Tax Act. On 06.08.2002, the business premises of the assessee was inspected and as a sequel to such inspection a pre-revision notice was issued proposing to treat a sum of Rs. 70,13,211/- as escaped turnover. Proposal was also made to impose penalty under Section 16(2) ....
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.... Sales Tax Act, 1959 deals with the assessment of escaped turnover. The purpose of this Section was to bring to tax any turnover, which has escaped assessment in the original proceedings and also to rectify cases of lower rate of taxes than what is legally applicable has been adopted in the assessment. Re-opening of assessment would be done under Section 16 of the Act only, if the tax turnovers which have been subjected to tax earlier escaped assessment or it had been under assessed, by being subjected to tax at a lower rate and not to refund or review the turnover either actually or escaped, already assessed for which purpose the powers of the Assessing Authority could be exercised under Section 55 of the Act. In terms of Sub-section (1) o....
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....ly suppressed the taxable turnover taxable at 11% by adopting incorrect method of computation of taxes, but for the inspection, the turnover would not have come to light. The assessee pointed out that the proposal to levy penalty under Section 16(2) of the Act was not based on best judgment assessment and therefore the question of imposition of penalty does not arise. 11. The First Appellate Authority pointed out that no penalty could be levied under Section 16(2) of the Act, if the assessment is based on the basis of books of accounts and for imposition of penalty finding of mensrea is necessary and the Assessing Officer have not recorded any finding of mensrea and held that imposition of penalty was unjustified and more so when the asses....