STATE OF TAMILNADU Vs. C SHANMUGAM AND COMPANY

JUDGEMENT

(1.) THIS revision has been filed under Section 38 of the Tamilnadu General Sales Tax Act (hereinafter referred to as the Act) against the order of the Sales Tax Appellate Tribunal dated 30.9.1999 in TA.No,746 of 1998 and COP.No,255 of 1998 wherein and whereby the penalty levied on the additional sales tax has been set aside by the Tribunal.

(2.) IN the absence of any specific provision or substantive provision in the additional sales tax for levy of penalty, such a levy has been held to be invalid by the Supreme Court in the case of INdia Carbon Ltd. Vs. State of Assam (reported in (1997) 106 STC 460). Hence, the levy of penalty on additional sales tax has rightly been deleted by the Tribunal particularly when the levy is made for the assessment year 1994-95.

(3.) THUS, even the argument that the amendment incorporated in the 1970 Act by introducing Section 3B is only clarificatory has been rejected by the Division Bench. In view of the enunciation of law both by the Supreme Court as to the leviability of penalty as well as by this Court as to the effect of amendment, we are of the considered view that there remains nothing to be considered in this revision and that the revision is to be dismissed.