SHIFA CONSTRUCTIONS Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) Heard the learned counsel appearing for the parties. By consent, this appeal is taken up for final disposal at the stage of admission.

(2.) This Sales-tax appeal under Section 24(1) of the Karnataka Sales Tax Act, 1957 (for short 'the Act') is directed against the order dated 27.05.2009 passed by the Additional Commissioner of Commercial Tax (Zone- I), Bangalore in the revision under Section 22-A(1) of the Act, whereby the Revisional Authority allowed the revision and set-aside the order passed by the Appellate Authority. The Appellate Authority had set-aside the order levying penalty of Rs.40,500/- under Section 12- B(4) of the Act. The Assessing Authority vide its order dated 15.11.2007 had levied the penalty holding that the difference between the tax paid in advance and payable by the appellant was more than 15%. The Appellate Authority, on the other hand held that the appellant was eligible for the benefit of Kara Samadhana Scheme.

(3.) The appellant is engaged in execution of works contracts. The tax payable, as assessed, was Rs.2,02,231/- for the assessment year 2001-02. After adjusting the amount of Rs.1,21,652/- paid during the said year, the balance due from the appellant was Rs.80,579/-. The appellant claims that he paid the said amount by cheque bearing No.964462 dated 21.03.2005 and penalty of Rs.12,087/- by another cheque bearing No.967152 dated 25.05.2005. In the covering letter dated 25.05.2005 with which the said cheques were tendered and received by the Department, the appellant had stated that the penalty amount was paid under Kara Samadhana Scheme.