2018 (10) TMI 205

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....passed in Second Appeal No. 37 of 2017 for the Assessment Year 2010-11 under Section 54 (1)(11) of VAT Act. Brief facts of the case are that the revisionist is a registered company and is carrying on a business of construction of building for which certain purchases were affected by the revisionist including the purchase of sand. While claiming benefit of Input Tax Credit the revisionist has submitted the relevant documents before its assessing authority and during the course of verification of the claim the assessing authority has inquired into the purchases affected by revisionist from one M/s. Deoki Nandan Trading Company, Govindpuram, Ghaziabad. The said firm M/s Deoki Nandan was allotted TIN number by the respondent department....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s committed the wrong described in coloumn (2) of the table below, it may, after such inquiry, if any, as it may deem necessary and after giving dealer or person reasonable opportunity of being heard, direct that such dealer or person shall, in addition to the fax, if any, payable by him, pay by way penalty, a sum as provided in column (3) against the same Serial No. of the said table." Sub-section (11) of Section 54 of the Act provides as follows : Sl. No. Wrong Amount of penalty 11 Where the dealer or other person, as the case may be,- (i) issues or furnishes a false or wrong certificate or from of declaration prescribed under this Act, by reason of which a tax on sale or purchase, ceases to be leviable, whether in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sel for the revisionist has also submitted that in the instant case the registration of the seller was cancelled on 20.11.2010 whereas admittedly the part of the purchase of sand was affected by the present revisionist on 15.11.2010 and thereafter again on 18.12.2010. It is claimed that in fact the revisionist was not aware that the registration of the seller was cancelled. Having heard learned counsel for the parties, in my opinion, the penalty proceeding which is initiated in the instant case against the revisionist, is totally illegal, arbitrary for the reason that in case if a registered dealer is effecting the purchases from a registered dealer whose registration is subsequently cancelled then in that event unless and until the purc....