No penalty u/s 51 of PVAT Act when there is voluntary reporting and no Punjab Tax involved

0 comments Friday, October 12, 2012

Punjab & Haryana High court in State of Punjab vs ABB Limited has upheld the order of Tribunal to the effect that when there is voluntary reporting at the ICC when goods were imported into the State of Punjab hence there was no tax of Punjab was involved, therefore no penalty u/s 51 of Punjab VAT Act could be levied.
  

Held: Tribunal concluded that there was no error on the part of the respondent-dealer as full sales tax on the transaction being inter state sale had been paid and the element of tax in Punjab State was not involved. It was also noticed that there was voluntary reporting at ICC and the goods were accompanied by proper and genuine documents complete in all respects. Also payments for the transactions were made through the banking channels i.e. by cheques and were not kept out of the books of account.
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