2014 (2) TMI 487

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....is engaged in the manufacture and sale of fertilizers namely 'urea' at its factory situated at Vijaypur District Guna (M.P). The present revision has been filed by the revisionist relating to assessment year 1993-94 whereby the penalty has been imposed on the assessee in proceedings under section 15-A (1)(e) of the U.P. Trade Tax Act. The revisionist company had entered into an agreement with another company outside the State of U.P. The assessing authority imposed tax under section 3-F of the Act treating the transfer of right to use on the application and imposed tax by order dated 4.7.1996. Against this imposition of tax on right to use, the revisionist filed first appeal before the Deputy Commissioner (Appeals), Trade T....

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....e. Learned counsel for the revisionist also argued that the application for stay had been moved along with the appeal. The stay order was passed on 23.10.1996. In the meantime, the stay application had remain pending. The tribunal has in the second appellate order taken a view that since there was a gap of six months in passing of the stay order, there was a delay of six months in payment of tax and that in itself was enough to confirm the penalty. Learned counsel for the revisionist has argued that the revisionist on his part has not made delay in filing the stay application rather it was filed within time but the appeallate authority took six months to pass orders thereon. Therefore it cannot be said that there was no reasonable ....

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.... court, the imposition of penalty is justified? 5. Whether in view of the facts and circumstances of the case the order upholding imposition of penalty by the tribunal is justified?" I have heard learned counsel for both sides and have perused the material on record. Clause (e) of sub-section (1) of section 15-A of the Act reads as under: "(e) has without reasonable cause, failed to pay, within the time allowed, the tax due from him; or" In this case, since the assessee had taken recourse to the statutory remedy available to him under the Act and had filed an appeal as well as stay application, it is not possible for this court to come to the conclusion that the assessee had without reasonable cause failed to deposit within time....