TaxTMI 
TaxTMI 
2021 (3) TMI 1071
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....VAT Act' for brevity) challenging the orders passed by the Puducherry Value Added Tax Appellate Tribunal in Tax Appeal Nos.40, 39 and 38 of 2017. 2. We have heard Ms.V.Usha, learned Additional Government Pleader (Puducherry) appearing for the petitioner. In T.C.(R).No.73 of 2019, notice to the respondent has returned with the endorsement "closed down". In T.C.(R).Nos.74 and 75 of 2019, though the names of the respondent have been printed in the cause list, none appears on behalf of them. 3. The questions, which have been raised for consideration in these appeals, are identical, which are as follows: "1. Whether the Appellate Tribunal erred in not considering in proper perspective the provisions of Pondicherry General S....
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....uthority. The Tribunal elaborately considered the grounds raised by the assessees before it, questioning the merits of the assessments and rejected the case of the assessees and confirmed the orders passed by the Assessing Officer as well as the First Appellate Authority. 7. With regard to the imposition of penalty, the Tribunal accepts the legal position that in terms of the provisions of Section 13(3) of the PGST Act, it provides for levy of penalty one and half times of the disputed tax, however, chose to interfere with the quantum of penalty and reduced the penalty by observing that it has taken into consideration the submissions put forth by the assessees before it. However, the Tribunal has not given any specific reasons as to why ....
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....u-Tread Tyres (supra), which was a case arising under the provisions of the Central Sales Tax Act, 1956. 41.The Hon'ble Full Bench pointed out that the expression "falsely represents" clearly shows that the element of mens rea is necessary component of the offence and in the absence of mens rea, resort to penal provision would not be proper, unless it is established that the conduct of the dealer was contumacious or that there was deliberate violation of the statutory provisions or wilful disregard. The Hon'ble Full Bench had referred to the decision in the case of Vijaya Electricals vs. State of Tamil Nadu, (1991) 82 STC 268, wherein, the dealer, who knew what was contained in the certificate of registration uses the C For....
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....er and this can be gathered from their conduct and the Assessing Officer was justified in imposing penalty, as confirmed by the first appellate authority. 43.However, we are not convinced with the manner in which the Tribunal had interfered with the order passed by the first appellate authority by reducing the penalty merely, on the ground that the dealer accepted and paid the tax. There can be no concession on this ground and it is a clear case of misplaced sympathy. If the dealer has not paid the correct rate of tax, it is illegal. If the dealer has collected tax and not remitted to the Department is all the more illegal. Therefore, there is no case for exercising any sympathy in such cases more particularly, wh....