SC order Whether mens rea is essential for levy of penalty under taxation laws

State of Gujarat and Anr. Vs Saw Pipes Ltd. (Supreme Court) The highest court of the country in this case was considering the levy of penalty and interest under the provisions of Gujarat Sales tax Act 1969 when the high court gave relief by setting aside interest and penalty in relation to tax paid on execution of works contract of coating of coal tar and enamel coating on pipes whereas the AO held it to be taxable under a different entry. While conceding  the liability to pay tax at higher rate before the High court, the respondent assessee pleaded bonafide belief based on expert opinion, to...