Penalty cannot be imposed merely because it is lawful to do so

Mangalore Refinery and Petrochemicals Limited vs State of Karnataka (Karnataka High Court) In M/s Mangalore Refinery and Petrochemicals Limited v. the State of Karnataka [S.T.R.P. No. 433 of 2017 decided on July 1, 2021] M/s Mangalore Refinery and Petrochemicals Limited (Petitioner) is engaged in the activity of manufacture and sale of petroleum products. The Petitioner filed petition against the order dated May 24, 2017 (Order) by the passed by the Karnataka Appellate Tribunal denying the input tax credit (ITC) in respect of capital goods and imposing penalty stating that penal provisions ar...