Penalty cannot be imposed for mentioning wrong period in VAT challan

La Mode Fashions Private Limited Vs Commissioner, Value Added Tax (Delhi High Court)

The short question that arises for consideration before this Court is the remedial measure by which the inadvertent and bonafide error can be corrected. Respondent has suggested a methodology in paragraphs 5 and 6 of the counter affidavit, as aforementioned. This methodology, however, cannot be accepted by the Court as this would entail a complicated procedure requiring the Petitioner to prefer an application for refund of Rs.2,58,912/-. Respondent would be thereafter required to pass an order of refund in favour of the Petitioner. After getting the refund, Petitioner would have to deposit the said amount for the period 01.08.2016 to 31.08.2016, for which the tax stands deposited. This may also entail imposition of penalty under Section 86(9) of the DVAT Act. Imposition of penalty is called for where the assessee fails to furnish returns by the due date, which is not the position in the present case. Admittedly, Petitioner has deposited the requisite tax for the relevant quarter of the assessment period but has inadvertently mentioned the wrong period in the challan and therefore, cannot be, in our view, saddled with the liability of penalty.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. This writ petition has been preferred seeking the following reliefs: –

“a) issue an appropriate Writ, direction or order in the nature of mandamus commanding the Respondent to amend the tax period of the challan No. 0510133290920160000156 dated 29^th September, 2016 to be reflected as for the 2^nd quarter of 2016-17 instead of 2^nd quarter of 2015-16;

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