Non payment of tax alongwith returns, levy of penalty was not justified

CST & VAT : Where assessee contested its liability to pay sales tax right upto Supreme Court and after decision of Supreme Court Assessing Officer framed assessment of assessee and also levied penalty upon it under section 12B(4) of Karnataka Sales Tax Act for non payment of tax alongwith returns, levy of penalty was not justified
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[2014] 49 taxmann.com 54 (Karnataka)
HIGH COURT OF KARNATAKA
Xerox India Ltd.
v.
State of Karnataka*
N. KUMAR AND MRS. RATHNAKALA, JJ.
S.T.R.P. NO. 298 OF 2013
DECEMBER  21, 2013
Section 12B of the Karnataka Sales Tax Act, 1957 - Penalty - For non payment of tax - Assessment year 2001-02 - Assessee contested its liability to pay sales tax on turnover representing maintenance agreements right upto Supreme Court - Supreme Court finally by its order dated 24-8-2005 decided issue against assessee and held that tax was payable on such turnover - Thereafter Assessing Officer framed assessment of assessee on 21-3-2006 - Assessee made payment of tax immediately - Later Assessing Officer levied penalty upon assessee under section 12B(4) for non payment of tax alongwith returns - Whether non payment of tax by assessee along with returns or at end of financial year could not be said to be wilful, deliberate or contumacious - Held, yes - Whether, therefore, levy of penalty was not justified - Held, yes [Para 14] [In favour of assessee]