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Penalty — Non-registration — Section 75A of the Finance Act, 1994 (the Act) — Section 75A no more in statutory book from 10-9-2005, but at relevant time, such mandatory requirement of registration could not be dispensed with — Penalty imposable.
Penalty — Non-payment of tax — Penalty u/s.76 and u/s.78 of the Act — Revisionary authority imposing penalty in revision — No element indicating deliberate attempt to escape liability — Penalties cannot be imposed mechanically — Section 80 of the Act.
Penalty — Failure to file returns — Tax paid and revised returns filed after getting revised figures- Mala fide not imputed — Penalty u/s.77 of the Act set aside.
Facts
The appellants appealed against a revisional order passed u/s.84 of the Act levying penalty u/s.75A, 76, 77 and 78 of the Act and contended that the revisional order intended to impose penalty without justifiable reason and that all cases required consideration u/s.80 of the Act. The Revenue on the other hand submitted that there was no need to intervene with the orders passed as in the absence of imposition by the adjudication order, revisionary power was bound to be exercised.
Held
The Tribunal observed that while imposing the penalty, the authority failed to apply the law properly. As regards penalties levied under various sections, it was held that:
Revisionary authority in respect of penalty levied to the extent u/s.75A was justified even though the provision was no longer in force, but at the relevant point of time when the law was in force to regulate taxable activities, such a mandatory requirement could not be dispensed with. In the absence of any reason to establish mala fide intention on part of the assessee, the penalty imposed u/s.76 and u/s.78 of the Act was unwarranted and the same invited consideration u/s.80 of the Act which provides for non-imposition of penalty in case of reasonable cause on part of the assessee. As far as penalty u/s.77 was concerned, there was a failure in filing the return. However, the assessee paid the taxes and revised returns were filed. Also, the authority did not cite any reasonable ground for levying penalty under this section and thus penalty u/s.77 of the Act is set aside.
