The State Of Tamil Nadu vs Nava Bharath Enterprises (P.) Ltd. on 5 January, 1981
Aggrieved, the assessee filed an appeal before the Appellate Tribunal. The assessee did not contest the appeal with regard to the assessment. But appeal was argued only for the cancellation of the penalties levied under section 12(3) and section 22(2) of the Act. The Appellate Tribunal deleted penalty under section 22(2) of the Act holding that the effect a obtaining registration fee and the application for registration at the time of inspection on October 29, 1981, would go to show that the assessee became a registered dealer from the date of commencement of the business following the decision in [1983] 52 STC 235 [State of Tamil Nadu v. Nava Bharath Enterprises (P.) Ltd.]. The Tribunal also deleted the penalty levied under section 12(3) of the Act holding that there was no wilful failure to file the return as required under section 12(3) of the Act since the Revenue had collected the tax from the assessee on October 29, 1981 itself that is even prior to May 1, 1982.