Some Views on Penal Provisions u/s 29(8) of MVAT Act

0 comments Tuesday, February 16, 2010
t is well esteblished principle that the power to levy penality under taxation laws is incidental and ancillary to the power of collection of tax and is provided to make sure the compliance of tax deposits by the assessees. Taxation laws are welfare laws i.e they are for the welfare of the general public at large.
Recently I have come across section 29(8) of MVAT Act which provides for the leving of penality on the dealers who fails to file their return for any period within the prescribed time to the tune of Rs. 5000 and the word ‘shall’ has been used in the said section for leving penality. The section 29(8) of MVAT Act runs as under:
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