HINDUSTAN AERONAUTICS LTD Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The present revision is filed by the petitioner/assessee against the order of the Sales Tax Appellate Tribunal (Additional Bench), Chennai dated 13.12.1999 passed in T.A.No.67 of 1999 raising the following substantial questions of law:-

(2.) The brief facts of the case are as under:-

(3.) The learned counsel appearing for the petitioner/assessee contended that the order passed by the Tribunal is illegal, wrong and without justification. It is further contended that the Tribunal is wrong in holding that the petitioner collected Additional Sales Tax from the Tamil Nadu Electricity Board overlooking the fact that it is not collection made by the petitioner, but, it was only reimbursement made by the Board of the expenditure incurred by the petitioner. It is further contended that it is wrong to state that there is a collection of additional sales tax in contravention of Section 3-A of the Tamil Nadu Additional Sales Tax Act, 1970. It is further contended that the petitioner is a Government of India undertaking and was under the bonafide belief that it is not subject to tax since it was only voluntarily reimbursed by the Electricity Board. It is also further contended that it is not a fit case for levying 100% penalty and alternatively submitted that the amount of levy of penalty is excessive, exorbitant and arbitrary. In respect of penalty levied under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, 1959, there is no finding by the authorities below that there is wilful suppression of taxable turnover. It is further contended that the Assessing Officer ought to have levied penalty under Section 16(2) read with Section 12(5)(iii) of the TNGST Act, 1959. It is further contended that the levy of penalty is unwarranted. Therefore, the Tribunal order is not in accordance with law. Therefore, the same may be set aside.