Escapement of tax without reasonable cause is essential component of section 43(2) of OVAT Act

Dhabaleswar Traders Vs State of Odisha (Orissa High Court) Orissa High Court held that the essential component of Section 43(2) of the OVAT Act for attracting the penalty, viz., the satisfaction of the Assessing Officer that the escapement of tax was without reasonable cause, is absent in the present case. Accordingly, imposition of penalty unjustified. Facts- The assessee-petitioner being a registered dealer under the Odisha Value Added Tax Act, 2004 (OVAT Act), carries on its business in edible oil, pulses, dal, sugar, coconut oil, vanaspati ghee and wheat on wholesale-cum-retail basis. On ...