TaxTMI 
TaxTMI 
IS PENALTY A REVENUE DUE TO THE STATE?
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....S PENALTY A REVENUE DUE TO THE STATE?<br> Query (Issue) Started By: - Sadanand Bulbule Dated:- 4-10-2019 Last Reply Date:- 25-5-2020 VAT + CST<br>Got 12 Replies<br>VAT / Sales Tax<br>Dear Experts. Navarathri Greetings. Under VAT statute, there was an ambiguity regarding the levy of penalty even for petty violation of provisions of the Act particularly in respect of documents being accompanied w....
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....ith the goods under transportation, some times without the knowledge of another State law, despite binding rulings on the subject. Subsequently the provisions were challenged before the Karnataka High Court.The revision order levying penalty in respect of interstate transaction was set aside by the State High Court on the ground that those provisions apply only to the State of Karnataka and not in....
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.... respect State interstate transactions. since the State did not enjoy such jurisdiction. Some are facing charges of purported loss of revenue on the ground of incorrect adjudication of penalty proceedings which were initiated despite the said State High Court judgement. Therefore in terms of the said State High Court judgement when the provisions to levy penalty did not apply to interstate trans....
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....actions, the question of revenue due to the State does not arise at all. Factual and legal position being so, the question of loss of revenue naturally shall not come into existence. Therefore it is requested to clarify what is revenue due to the State? In other words, is penalty a revenue due to the State? Relevant rulings, if any, are solicited. Reply By KASTURI SETHI: The Reply: During the y....
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....ear 2012 (after March, 12) or 2013, I have read judgment of CESTAT wherein it was held that non-imposition of penalty is no revenue loss. I recall this very well but could not trace out. Reply By Sadanand Bulbule: The Reply: Thank you so much Sethi Sir for your quick clarification.🙏 Reply By Sadanand Bulbule: The Reply: Sir, I think it is reported in 2013 (9) TMI 417. Pl confirm. wit....
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....h regards. Reply By KASTURI SETHI: The Reply: No. This citation is not correct. Reply By KASTURI SETHI: The Reply: Dear Sh.Sadanand Bulbule Ji, If you get the case law, pl. post citation here. I also desperately need. Thanks. Reply By Sadanand Bulbule: The Reply: Gm Sir. Sure and my pleasure Sir. Reply By KASTURI SETHI: The Reply: Waiting eagerly. I am also trying. Thanks. Reply By Sad....
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....anand Bulbule: The Reply: Dear Sethi Sir. In continuation of the discussion on the query, I have come across the following judgement dated 06/07/2005 rendered by the Hon'ble Gujarat High Court.Pl examine whether it would answer the query. Commissioner of Income Tax Vs. Parmanand M.Patel (2005) 198 CTR Guj 641,2005 278 ITR 3 Guj. = 2005 (7) TMI 72 - GUJARAT HIGH COURT In Para 33(h) of the s....
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....aid judgement, it is held as under: (h) Even if it is lawful to impose penalty, that by itself would not be sufficient to entitle the Commissioner to treat the assessment order as erroneous and prejudicial to the interests of the revenue; Regards. Reply By KASTURI SETHI: The Reply: That judgement pertains to Service Tax or Central Excise but not to any other Act.. I am subscriber to EXCUS als....
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....o. I emailed CENTAX on this issue but no response was received. Reply By YAGAY andSUN: The Reply: This case was related to Excise Regime, I had also read but not able to recall or digout from my data base. Will try again. Reply By Sadanand Bulbule: The Reply: Thank you so much Sir for your continued efforts in this regard. Pl throw light on the issue. Reply By KASTURI SETHI: The Reply: M/s.....
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....Yagay and Sun, Dear Sir, Your speed is really appreciable. I am overwhelmed. You have softened my burden. You have converted bane of lockdown into a boon. Lockdown has become blessing in disguise. I hope and wish you will keep this pace even after lockdown period. These are my spontaneous thoughts i.e from the core of my heart. Regards, K.L.SETHI<br> Discussion Forum - Knowledge Sharing ....