Section 7 in Gujarat Sales Tax (Second Amendment) Act, 1976
7. Amendment of section 45.- In section 45 of the principal Act, for sub-sections (5) and (6), the following sub-sections shall be substituted, namely:-
"(5) Where in the case of a dealer the amount of tax-(a)assessed for any period under section 19, 41 or 50; or(b)reassessed for any period under section 44,exceeds the amount of lax already paid under sub-section (1), (2) or (3) of section 47 by the dealer in respect of such period by more than twenty per cent, of the amount of tax so paid, the dealer shall be deemed to have failed to pay the tax to the extent of the difference between the amount so assessed or reassessed as aforesaid and the amount paid.(6)Where under sub-section (5), a dealer is deemed to have failed to pay the tax to the extent mentioned in the said sub-section, there shall be levied on such dealer, a penalty of such amount as is equivalent to the amount of simple interest for the period commencing on the date of expiry of the time prescribed for payment of tax under sub-section (1), (2) or (3) of section 47 and ending on the date of assessment or, as the case may be, reassessment, at the rate of twenty-four per cent, per annum on the amount of tax equivalent to such difference or any less amount remaining unpaid during such period:Provided that where in assessing the amount of tax from any dealer under section 19, 41 or 50 in respect of any period, the time taken for making an order of assessment exceeds eighteen months from the date of expiry of the time prescribed for the payment of tax under sub-section (1), (2) or (3) of section 47, the Commissioner shall estimate the amount of penalty payable by the dealer for the period between the date of expiry of the said period of eighteen months and the date of payment of tax specified in the notice under sub-section (4) of section 47 in respect of the amount of tax falling under sub-clause (ii) of clause (a) of the said sub-section;Provided further that where the Commissioner is satisfied that the difference between the amount payable as assessed or reassessed and the amount paid has taken place on account of some reasonable cause, he may remit the whole or part of the penalty, payable in respect of any period by any dealer.
