STATE OF TAMIL NADU Vs. MAJESTIC EXPORTS

JUDGEMENT

(1.) This tax case revision, at the instance of the Deputy Commissioner (Commercial Taxes), Coimbatore, was admitted on the following substantial question of law:

(2.) The learned counsel appearing for the Revenue submitted that the Tribunal ought not to have deleted the penalty when the assessee does not disclose the taxable turnover on sale of REP licence and exim scrip in the monthly return for the assessment year 1992-93 and hence, the order passed by the Tribunal is not in accordance with law and the same has to be set aside.

(3.) The learned counsel appearing for the respondent-assessee submitted that the assessee has not included the turnover under the bona fide belief that they are not liable to show it and therefore, it is not a fit case for levying penalty under section 12(5)(iii) of the Act and in support of his contention, he relied on the judgments in the case of P.S. Apparels v. Deputy Commercial Tax Officer, T. Nagar East Assessment Circle, Madras, 1994 94 STC 139 (Mad) and State of Tamil Nadu v. Indian Silk Traders,1994 94 STC 157 Therefore, the order passed by the Tribunal is in conformity with law and the same has to be confirmed.