Kashi Ram Ved Prakash Vs Commissioner of Commercial Tax U.P. (Allahabad High Court)
In the case of Kashi Ram Ved Prakash v. Commissioner of Commercial Tax U.P., the Allahabad High Court examined penalties under Section 15 A (1)(qq) of the UP Trade Tax Act. The dispute arose from the assessment proceedings for the assessment year 1988-89. The tribunal had set aside the order of the first appellate authority and allowed the department’s appeal, prompting the revisionist to approach the High Court.
The central issue revolved around whether the revisionist, Kashi Ram Ved Prakash, was liable for penalty under Section 15 A (1)(qq). The revisionist argued that a refund had been granted during assessment, implying that no tax had been retained from UP State Spinning Mills Company Limited, the purchasing dealer. It was contended that since Form 3 B had been submitted by the purchasing dealer, indicating payment, no tax had been received or withheld by the revisionist.
However, the Additional Chief Standing Counsel for the respondents argued that despite the refund, the revisionist had separately charged and realized trade tax from UP State Spinning Mills. The tribunal’s decision rested on the factual finding that the revisionist had indeed received 4.4% trade tax from the purchaser, which had not been deposited subsequently.
