Section 87 in Daman and Diu Value Added Tax Regulation, 2005
87. Reduction or increase of penalty in certain cases.
(1)Where as a result of any proceedings the amount of tax has been wholly reduced, and a penalty has been levied with reference to such tax, the penalty so levied shall be reduced to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such tax.(2)If a person is liable to pay a penalty under sub-section (11) of section 86, and the person voluntarily discloses in writing to the Commissioner the tax deficiency,-(a)the amount of the penalty leviable under this Regulation shall be reduced by eighty per cent. of such penalty if such disclosure is made before the Commissioner issues the notice under section 58 for conducting of the audit of the business affairs of such person;(b)the amount of the penalty leviable under this Regulation shall be reduced by fifty per cent. of such penalty if such disclosure is made after the Commissioner has issued the notice under section 58 for conducting of the audit of the business affairs of such person.(3)If the tax deficiency has arisen in pursuance of determination by the Commissioner under section 84 or ruling given under section 85 and in pursuance of such determination or ruling, a person has become liable to pay a penalty under subsection (11) of section 86, the amount of the penalty payable under this Regulation shall be reduced to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such tax.(4)Where penalty under this Regulation has been imposed upon a person and such penalty has not been reduced by any authority or Appellate Tribunal or court and has become final, and such person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure or default occurring on another occasion (in this section called the "subsequent offence"), the penalty leviable under this Regulation shall be increased by-(a)in the case of the first subsequent offence, fifty per cent. of the penalty leviable under this Regulation; and(b)in the case of the second and any further subsequent offence, one hundred per cent. of the penalty leviable under this Regulation.
