R CHELLAPPA Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) THE tax case appeal is preferred by the assessee against the order of the Joint Commissioner dated 25. 05. 1998 made in F1 5489/96 and SMR No. 314/96 restoring penalty under Section 12 (3) (b) of the TNGST Act read with Section 9 (2-A) of the CST Act.

(2.) WHEN the matter is taken up for orders, the counsel for the department as well as the counsel for the assessee submitted that the issue has been covered by the Division Bench of this court in the case of Appollo Saline Pharmaceuticals (Private Limited) vs. Commercial Tax Officer (FA) and others reported in (2002) 125 STC 505 in favour of the assessee to the effect that the penalty leviable under Section 12 (3) (b) of the TNGST Act read with Section 9 (2) of the CST Act cannot be levied in respect of the assessment made under Section 12 (1) of the TNGST Act.

(3.) IN the present case, the assessment year is 1993-94. The penalty has been levied only in respect of the assessment made under Section 12 (1) of the TNGST Act which is against the statutory provision as well as the law laid down by this Court in the above said Judgment, wherein it was held thus:-