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« VAT (Value Added Tax) »
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 Gujarat slashes tax on ATF by 5 per cent
 CENVAT Credit can’t be denied If ISD invoices issued for distribution of ITC prior to Registration
 1 step forward, 2 steps back. Is GST going the VAT way?
 1 step forward, 2 steps back. Is GST going the VAT way?
 Pending VAT comes to haunt companies claiming input tax credit
 One-time settlement of VAT, excise disputes in the works
 Haryana government uploads photos of VAT defaulters
 Filing of online return for 4th quarter of 2017-18 extension of period thereof.
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns

HC quashes penalty provision in VAT Act
January, 07th 2009
In a major relief to dealers, the Karnataka High Court has struck down section 72 (1) of Karnataka VAT Act, 2003, as unconstitutional and unreasonable. Allowing a batch of petitions filed by Philips Electronics India Limited and others, Justice D V Shylendra Kumar has said that frequent tinkering in the said Act shows that there is lack of clarity in the legislative policy. Levy of penalty on tax liability is nothing but tax on tax. The court has ordered the authorities to refund the penalty collected so far under the said provision. The complainant challenged the provision which enabled the authorities to impose penalty at the rate of 10% of the value added tax payable in addition to a daily penalty of Rs 50 and interest of 1.25% if there is delay of even one day in furnishing the monthly tax returns. It termed this provision as oppressive and unreasonable. "The huge penalty on smaller dealers and small liability of tax assumes gigantic proportions when the delay is 3-5 years as seen in some cases. A penalty based on extent of delay which sometimes exceeds the liability is grossly disproportionate. An arbitrary penalty which is also an irrational levy automatically loses nexus achieving the object of correcting mischief sought to be prevented by the legislation and therefore renders itself as unconstitutional. Any penalty should be in reasonable limits to act as sufficient and mere deterrent and not reaching level of confiscation," the judge has observed.
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