TVL. INDIRA INDUSTRIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The assessee has filed this Tax Case (Revision) as against the order passed by the Sales Tax Appellate Tribunal (Main Bench) Chennai dated 05.07.2012 in STA No.242 of 2008, relating to the assessment year 2005-2006, raising the following substantial question of law:

(2.) The only question raised by the assessee is as to whether the levy of penalty under section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 was justifiable particularly when there was no suppression pointed out by the Revenue that the claim of the assessee related only to concessional rate of tax.

(3.) The assessee herein, is a manufacturer of Industrial Noise Control Machineries and Components. Based on the inspection conducted on 12.09.2002, the Assessing Officer found that the petitioner has effected first sales of machineries to BHEL, Hyderabad, and delivered the same to Tamil Nadu Electricity Board, Courtallam within Tamil Nadu and the assessee claimed concessional rate of tax at 4% based on the Notification No.II(i)/CT/19(b-10)/02 dated 27.03.2002. The claim was rejected on the ground that the assessee had not produced necessary Certificate from the Tamil Nadu Electricity Board for claiming concessional rate of tax. The Sales Tax Appellate Tribunal further pointed out that there were corrections made in the invoices and in the delivery challan and there was no evidence to prove movement of goods from within the State to other State with reference to the claim of inter-state sale. Thus, based on the records, the Sales Tax Appellate Tribunal confirmed the assessment holding that there was no recorded evidence to establish that the transfer of goods were from Ranipet to Hyderabad and Hyderabad to Courtallam. While confirming the order of assessment, as regards levy of penalty, the Sales Tax Appellate Tribunal held that the provisions of Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 stood attracted since there was difference between the tax assessed and tax paid.