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244 Goods & Services Tax Cases - Reports [Vol. 1
[2010] 1 GST 244 (MP)
HIGH COURT OF MADHYA PRADESH
Rajesh Electricals*
v.
Registrar
MS. S.R. WAGHMARE AND R.S. GARG, JJ.
WRIT PETITION NO. 7570 OF 2008
OCTOBER 27, 2009
PENALTY - Imposition of penalty in certain circumstances - Assessing
Officer held that tax on sale of starters and switches was payable at rate
of 12 per cent and not at rate of 3 per cent as paid by assessee - He,
accordingly, held return filed by assessee to be a false return and directed
recovery of tax at rate of 12 per cent and also imposed penalty upon
assessee - Board held that tax on impugned sale was payable at rate of
3 per cent - Whether once tax rate was held by Board to be 3 per cent,
then return filed by assessee could not be held to be false, wrong or bad
- Held, yes - Whether, therefore, penalty imposed upon assessee was
liable to be set aside - Held, yes [Section 69 of the Madhya Pradesh
Vanijyik Kar Adhiniyam, 1994]
FACTS
The assessee was dealing in electrical goods and pumping sets. It deposited
tax on the sale of starters and switches at the rate of 3 per cent. The
Assessing Officer held that tax on the impugned sale was payable at the
rate of 12 per cent and not at the rate of 3 per cent. He, accordingly, held
the return filed by the assessee to be a false return and directed recovery
of tax at the rate of 12 per cent and also imposed penalty upon the assessee.
However, the Appellate Board agreeing with the assessee held that the
order passed by the Assessing Officer was bad; and that tax on the
impugned sale was payable at the rate of 3 per cent only. The assessee
thereafter made an application under section 71 with a submission that
the question relating to penalty had not been decided though was raised,
therefore, the same be also decided. The Board rejected the said application
holding that the question was not raised before it, therefore, the
application under section 71 was not maintainable.
On writ :
*In favour of assessee.
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 120
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