Case Law Details
Medha Servo Drives Private Limited & Anr. Vs Assistant Commissioner of State Tax (Calcutta High Court)
The appellants had explained that there is absolutely no mens rea on their part and there was no intention to evade payment of tax. Nevertheless, the Adjudicating Authority had imposed full tax and penalty upon the appellants and aggrieved by such order, the appellant had filed the appeal before the First Appellate Authority. The short issue which the Appellate Authority was required to consider as to whether there is any mens rea on the part of the appellants in attempting to evade payment of tax. Unfortunately, though the order passed by the Appellate Authority is 22 pages order, there is absolutely no discussion on the question as to whether the mens rea was established. It is well settled that by merely using the expression “mens rea”, it would not amount to concluding that there was a willful attempt on the part of the dealer to evade the payment of tax. The concerned authority or the First Appellate Authority, is required to record the reasons in writing as to how and in what manner mens rea was established. Since this is lacking in the order passed by the Appellate Authority dated 6.4.2022, we are of the considered view that the matter should be remanded back to the Appellate Authority for fresh consideration to decide this short issue as to whether there is any mens rea on the part of the appellants to evade payment of duty.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
We have perused the affidavit filed in support of the application for condonation of delay and we are satisfied that sufficient causes have been shown in preferring the instant appeal. Hence, the delay is condoned and the application for condonation of delay is allowed.
In Re : MAT 1751 of 2022
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