Section 54 of the Uttar Pradesh Value Added Tax Act, 2008 - Offences and penalties

CST & VAT : Uttar Pradesh VAT - Where Tribunal had not considered whether goods in question was taxable and further, demand notices were served on assessee company instead of receiver appointed by High Court, issue of imposition of penalty was to be reconsidered
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[2015] 54 taxmann.com 276 (Allahabad)
HIGH COURT OF ALLAHABAD
Anupam Sugar Industries
v.
Commissioner of Commercial Tax, U.P.*
B. AMIT STHALEKAR, J.
TRADE TAX REVISION NOS. 101 TO 103 OF 2014
NOVEMBER  14, 2014
Section 54 of the Uttar Pradesh Value Added Tax Act, 2008 - Offences and penalties - Sales tax/VAT - Loan taken by assessee's molasses unit being declared NPA by bank, High Court appointed receiver and assessee's accounts were stopped - On other hand, penalty was imposed for failure to pay tax demand on production of molasses - Assessee's case was that molasses unit being taken over by receiver, proper notice was not served, that molasses itself would not be taxable, and that financial constraint was faced since bank stopped operation of account - Further, Tribunal had not considered whether goods in question were taxable - Whether, matter required readjudication - Held, yes [Paras 10 and 11] [In favour of assessee/Matter remanded]