2014 (4) TMI 366

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....: Mr. S. K. Posti, Adv For the Respondent : Mr. Syed Nadeem, Standing Counsel JUDGMENT Barin Ghosh, C.J. (Oral) There is no dispute that under Section 35 of the Uttarakhand VAT Act, 2005 (hereinafter referred to as "the Act"), revisionist was required to deduct tax at source while making payment to its contractors and was also required to deposit the tax so deducted within the followin....

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.... prepared bankers drafts equivalent to the amount of tax deducted at source in the name of the Assessing Officer and went to deposit the amount in the bank accounts of the Assessing Officer, but the banker of the Assessing Officer refused to accept the same as they were outstation bankers drafts, despite the assessee offering to pay collection charges to the banker of the Assessing Officer separat....

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.... fails to deposit the amount so deducted as required in sub-section (4), the Assessing Authority may, after giving such person an opportunity of being heard, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this section but not so deducted and, if deducted, not so deposited into Government Treasury." 3. A look at th....

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....o deposit the deducted amount, but for the reasons indicated above the same could not be deposited as the banker of the Assessing Officer did not agree to accept an outstation bankers draft despite the assessee offering to pay the collection charges. In the matter of using discretion, it was obligatory on the part of the Taxing Authorities to look into this conduct on the part of the assessee. The....