TaxTMI 
TaxTMI 
2020 (3) TMI 449
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.... 2. Learned counsel for the Assessee submitted that the Assessee had filed the return and paid the due tax and therefore the condition under Section 12(3)(a) of the Act for imposition of penalty was not satisfied and therefore the first appellate authority has rightly deleted the penalty imposed on the Assessee, which was however restored by the Tribunal by an exparte order. 3. The findings of the Assessing Authority in the impugned assessment order itself states that, the Assessee has filed the return. However, without discussing the effect thereof, the assessing authority has imposed the penalty of Rs. 1,97,534/- under Section 12(3)(a) of the Act. The relevant portion of the assessment order dated 20.10.1999 is quoted below for ready r....
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....viable. It is seen from the assessment order that the assessing officer himself observed in the last paragraph of page 3 of assessment order that the dealers have filed return in Form A1 for the year and tax due to the tune of Rs. 1,24,834/- was paid. When the return along with the tax due was paid, there was no reason for levy of penalty under Section 12(3)(a) of the Act. The Assessing Officer is therefore not justified in levying penalty under Section 12(3)(a) of the Act and is set aside accordingly." 5. The learned Tribunal, however restored the said penalty with the following observations. "2.The appeal was posted for hearing on several occasions ie., on 21.3.06, 23.05.06 and 7.7.06. No representation has been made on the si....
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....eleted the penalty on the ground that the Respondent had filed returns before assessment and hence penalty is not warranted. We find that the stand taken by the first appellate authority is not correct. But for inspection made by the Department, the liability to tax would not have come to light. Further there was no voluntary filing of return or payment of tax and that the filing of return subsequent to inspection by the Department could not be considered as in compliance of the provisions of the Act. The assessment falls under Section 12(2) of the Tamil Nadu General Sales Tax Act and the penalty levied under Section 12(3)(a) of the Tamil Nadu General Sales Tax Act is found to be in order. We therefore hold that the stand taken by ....
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.... and the STAT have not taken note of the payment of the amount by way of cheque dated January 7, 1998 and therefore, the impugned orders cannot be sustained." 7. Learned counsel for the Revenue however supported the impugned order of the learned Tribunal and submitted that, but for the inspection carried out at the business place of the Assessee, the Assessee would not have himself registered under the Act and paid the tax after filing the return. Therefore, there is clear intention on the part of the Assessee to evade tax and hence the penalty was justified. 8. Having heard the learned counsel for the parties, we are of the opinion that the learned Tribunal has erred in restoring the penalty, that too by an exparte order. The conting....