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High Court upheld composition as there was no wilful conduct by assessee
High Court upheld composition as there was no wilful conduct by assessee
Assessee was an exporter/wholesaler of steel-made items. It had sold steel balls and submitted ST-1 form and claimed exemption. The ST-1 form was found to be forged. Assessing authority levied sales tax, and directed registration of FIR. Assessee made an application u/s 54 for composition of offences. High Court upheld Tribunals decision allowing composition, as there was no willful conduct by assessee, and it had offered composition money. -900224
1 .Assessee was an exporter-cum-wholesaler dealing in readymade garments and steel-make items since 1998 and was registered with Sales Tax Department of Govt. of NCT of Delhi.
2 .It had sold steel balls for a sum of Rs 23,50,000 and recieved payment by cheques.
3 .It submitted the ST-1 form and claimed exemption on the sale.
4 .Upon verification, the ST-1 form was found to be a forged document.
5 .The assessing authority levied sales tax in addition to interest, and directed registration of FIR.
6 .Assessee moved an application u/s 54 for composition of the offences.
7 .Appellate Tribunal remitted the matter to the Commissioner VAT, who again turned it down.
8 .Appellate Tribunal set aside the order and allowed the appeal.
On Revenues writ petition, the High Court held as under:
9 .Given the fact that no "willful" conduct was alleged by the Commissioner, Sales Tax in the report of the criminal case, in our view, the modified application of the respondent for composition, as submitted before the Appellate Tribunal at the stage of consideration, deserves to be accepted
10 .For the other offence under Section 50(1)(j), the amount of 5,000/- offered as composition money is the maximum prescribed in law.
11 .There is no reason why the composition money thus offered ought not to be accepted.
