HP VAT: Section 16(7) Penalty Requires Applicability of Section 16(4) – HP HC

Bhushan Power & Steel Ltd. Vs Assistant Excise & Taxation Commissioner and another (Himachal Pradesh High Court) The Himachal Pradesh High Court in Bhushan Power & Steel Ltd. v. Assistant Excise & Taxation Commissioner ruled that penalties under Section 16(7) of the HP Value Added Tax Act, 2005, cannot be imposed without first establishing the applicability of Section 16(4). Section 16(4) mandates registered dealers to pay their full tax liability before filing returns. Failure to comply attracts a penalty under Section 16(7). A division bench of Justices Tarlok Singh Chauhan a...