Partly allowed

M/S.Field Motors Pvt.Ltd. v. State of Odisha

Orissa HC3 Jul 2023STREV/48/2019

Case brief

AI extract

What is this about?

The High Court of Orissa, Cuttack disposed of a revision petition under Section 80 of the Odisha VAT Act challenging tax and penalty orders. The Court upheld the tax liability but, due to a legislative amendment reducing the penalty rate, ordered the penalty to be reduced from 200% to 100%.

What did the court decide?

The penalty reduced from 200% to 100%; ordered to pay tax and reduced penalty within two months.

M/S.Field Motors Pvt.Ltd. Vs State of Odisha — Writ and Judicial Review | Orissa HC (2023)

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IN THE HIGH COURT OF ORISSA AT CUTTACK

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STREV No.48 of 2019

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M/s. Field Motors Pvt. Ltd. ..……. Petitioner

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Mr. Sumit Lal, Advocate

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-Versus-

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State of Odisha

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..……. Opp. Party Mr. S.S. Padhi, Addl. Standing Counsel for CT & GST CORAM:

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JUSTICE S. TALAPATRA JUSTICE SAVITRI RATHO

ORDER

03.07.2023

Order No.

1. This matter is taken up through Hybrid Mode.

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2. Heard Mr. Sumit Lal, learned counsel appearing for the revision petitioner and also heard Mr. S.S. Padhi, learned Addl. Standing Counsel appearing for the CT & GST.

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3. By means of this revision petition filed under Section-80 of

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the Odisha Value Added Tax, 2004, the order dated 28.02.2019 passed in S.A. No.347 (VAT) of 2013-14 delivered by the Full Bench of the Odisha Sales Tax Tribunal, Cuttack confirming the order dated 06.12.2013 passed in the First Appeal being Appeal Case No.AACUII- 142/2007-08 has been challenged.

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4. Mr. Lal, learned counsel has fairly submitted that while

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selling the automobile, the revision petitioner, who is the dealer did

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not reflect the discount that he had granted to the buyer. But later on,

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some spare parts was given away without any price in lieu of discount. Mr. Lal, learned counsel has admitted that there is no

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reflection of such discount in any record. The first appellate authority and the second appellate authority have observed that the revision petitioner is liable to pay the due tax with penalty for those motor

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spare parts which had been given away by the revision petitioner.

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5. Mr. Lal, learned counsel has further asserted that by the recent amendment which was carried out in 2015, the penalty has been reduced to 100% from 200%. There cannot be any debate over the said legislative change. That benefit has been urged to be given to the dealer, the petitioner.

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6. Mr. S.S. Padhi, learned Addl. Standing Counsel for CT &

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GST has contended that there is no infirmity in the judgment and as such, this revision petition should be shot down at this stage. Even no substantial question of law is involved.

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7. Having heard the counsel for the parties, we find force in the submission of Mr. Padhi, learned Addl. Standing Counsel. The finding is concurrent one and hence, we are not inclined to interfere

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with the finding as regard to liability of tax and penalty. But at the same time, in view of the legislative change that has taken place by

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reducing the volume of the penalty and keeping in consideration of

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the peculiar facts and circumstances of this case, we reduce the penalty from 200% to 100%, but this will not create any precedent for any other case, in as much as, we have not laid down any principle to be applied generally.

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8. The revision petitioner is directed to pay the tax and the penalty within a period of two months from today.

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9. Accordingly, the revision petition stands disposed of.

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Urgent certified copy of this order be granted as per rules.
(S. Talapatra)
Judge
(Savitri Ratho)
Judge

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Signature Not Verified

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Digitally Signed Signed by: SUBHASIS MOHANTY Reason: Authentication Location: High Court of Orissa, C utta ck. Date: 17-Jul-2023 18:44:01

M/S.Field Motors Pvt.Ltd. v. State of Odisha

Case brief

What is this about?

What did the court decide?

M/S.Field Motors Pvt.Ltd. v. State of Odisha

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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