M/S.Aryan Ispat And Power PVT.LTD. vs. State Of Orissa
Held
The Court held that Section 42(5) of the OVAT Act mandates penalty imposition equal to twice the assessed tax once an audit assessment is completed. There is no discretion for the assessing officer to reduce this penalty.
Facts
The petitioner-assessee contended that disallowed input tax credit (ITC) should be adjusted against surplus ITC, resulting in nil tax due. The authorities imposed penalty under Section 42(5) of the OVAT Act, which the petitioner challenged.
Key Issues
Whether penalty under Section 42(5) of the OVAT Act is imposable when surplus ITC is available, and if the provision is constitutionally valid.
Sections Cited
Section 42(5), Section 43(2)
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF ORISSA AT CUTTACK
STREV No. 47 of 2015 and STREV No. 33 of 2016
STREV No.47 of 2015 M/s. Aryan Ispat & Power Pvt. Ltd.
….
Petitioner -versus- State of Odisha, represented by the Commissioner of Sales Tax …. Opposite Party
AND STREV No. 33 of 2016 M/s. Aryan Ispat & Power Pvt. Ltd.
….
Petitioner -versus- State of Odisha, represented by the Commissioner of Sales Tax …. Opposite Party
Advocates, appeared in these cases: For Petitioner : Mr. Kartik Kurmy, Advocate
For Opposite Party : Mr. S.K. Pradhan Addl. Standing Counsel
CORAM: THE CHIEF JUSTICE JUSTICE M.S. RAMAN
JUDGMENT 06.12.2022
Dr. S. Muralidhar, CJ.
These two revision petitions arise out of similar set of facts involving the same parties and identical questions of law and are, accordingly, being disposed of by this common judgment.
STREV No. 47 of 2015 by the Petitioner-Assessee arises fr
The judgment continues below.
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Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.