TaxTMI 
TaxTMI 
2015 (4) TMI 211
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.... return filed for the year 2008-2009 under Section 22 (2) of the Tamil Nadu Value Added Tax Act, 2006 (for short 'the Act'). On verification of the records, the Assessing Officer found that the dealer had paid 2% on the sale of food and drinks including sweets, savouries, unbranded alcohol drinks and beverages in terms of Section 7 (1)(b) of the Act as applicable and also availed input tax credit on the purchase of the same at the rate of Rs. 1,01,919/- (Rupees One Lakh One Thousand Nine Hundred and Nineteen only). The Assessing Officer was of the view that the dealer is not entitled to claim input tax credit in view of specific provision, viz., Section 7 (2) of the Act and the same was reversed in the order in TIN : 33500640938/200....
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....availed input tax credit and fairly conceded that it has paid the tax demanded immediately thereon and, therefore, the department ought not have imposed penalty and the above is plea of the appellant assessee before this Court as well. 6. For better clarity, it will be useful to refer to the relevant Sections 7 (1) (a) and (b) and Section 7 (2) of the Act, which are extracted hereunder :- 7. (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,- (a) every dealer shall pay tax on the sale of ready to eat unbranded foods including sweets, savouries, unbranded non-alcoholic drinks and beverages served in or catered indoors or outdoors by star hotels recognized as such by Tourism Department of ....
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.... subject to the provisions of sub-section (3), at any time within a period of five years from the date of assessment order by the assessing authority, determine to the best of its judgment the turnover which has escaped assessment and assess the tax payable on such turnover after making such enquiry as it may consider necessary. (b) Where, for any reason, the whole or any part of the turnover of business of a dealer has been assessed at a rate lower than the rate at which it is assessable, the assessing authority may, at any time within a period of five years from the date of order of assessment by the assessing authority, reassess the tax due after making such enquiry as it may consider necessary. (2) Where, for any reason, the input....
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....n fifty per cent of the tax paid as per the return; (4) in addition to the tax determined under sub-section (2), the assessing authority shall direct the dealer to pay as penalty a sum - (i) which shall be in the case of first such detection fifty per cent of the tax due in respect of such claim; and (ii) which shall be in the case of second or subsequent detections, one hundred per cent of the tax due in respect of such claim: Provided that no penalty shall be levied without giving the dealer a reasonable opportunity of showing cause against such imposition. ********* 8. We find that on the admitted fact of wrongful availment of input tax credit, the provisions of Section 27 (4) (i) and (ii) squarely mandates levy of pena....