M/S Maangalaya Constructions vs. Deputy Commissioner Of Commercial Taxes
Held
The Court held that while the rectification of the tax amount was permissible under Section 69(1) of the KVAT Act, levying penalty and interest on the petitioner for a mistake not attributable to them was incorrect. The amount already paid under the waiver scheme was also to be deducted.
Facts
The petitioner availed excess input tax credit due to a mistake by the predecessor in office. After settling arrears under a waiver scheme, the respondent attempted to rectify the mistake under Section 69(1) of the KVAT Act, demanding tax, penalty, and interest. The petitioner challenged this demand.
Key Issues
Whether the Assessing Authority can levy penalty and interest when rectifying a mistake apparent from the record, which was caused by a predecessor's error. Whether payments made under a waiver scheme should be deducted from the rectified tax demand.
Sections Cited
Section 69(1), Section 39(1)
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Cause title — parties, addresses and appearances
Petitioner states that, it is involved in the business of construction and had file
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