2023 (8) TMI 1405

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....etitioner was called for a personal hearing on 08.12.2021. Thereafter, the impugned order dated 19.01.2022 was passed by respondent. Relevant portion of the impugned order reads as under: "New provision was inserted as per Government Gazette Notification No:217 dated 14.10.2015 [Act No.13 of 2015], Section 19(1) of TNVAT Act stipulates that there shall be the ITC of the amount paid under this Act, by the registered dealer to the seller or his purchases of the goods specified in the first schedule. The registered dealer who claims ITC, shall establish that the tax due on purchase of goods has actually been paid in the manner prescribed by the reported dealer who sold such goods and that the goods have been actually been delivered. Furth....

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....ccepted the liability and paid the tax thereon, subsequent to order dated 11.07.2019. 4. The petitioner had filed a rectification application under Section 84 of the TNVAT Act, 2006. The rectification application has been rejected vide order dated 14.02.2022. It is submitted that under similar circumstances, taking note of Section 17(4) of the TNVAT Act, 2006, this Court in the case of Simran International Vs. Assistant Commissioner (CT), Periamet Assessement Circle, Chennai reported in [2017] 9 VST-OL 333 (Mad), held that there was no justification in imposing penalty under Section 27(4) of the TNVAT Act, 2006. 5. The learned counsel for the petitioner submits that this Court had compared Section 62 of the TNGST Act, 1959 and Section 27(....

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.... Act, 1959 with Section 27(4) of TNVAT Act, 2006 cannot be applied. The amended provisions in Section 27(4) of the TNVAT Act, 2006 as it stood prior to 2016 read differently. They are reproduced below: Prior to amendment Section 27(4) as substituted from 29th January 2016 by Section 11 of the Second Amendment Act (13 of) 2015. (4) In addition to the tax determined under subsection (2), the assessing authority shall direct the dealer to pay as penalty as 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." In addition to the tax determined u....