The filing of revised returns after the initiation of penalty proceedings lacked bona fide and did not absolve the petitioner from liability under Section 40(2) of the JVAT Act.

JUDGMENT :

Heard learned counsel for the parties.

2. The instant writ application has been preferred for following reliefs:-

(i) For the issuance of an appropriate writ/order/direction including a writ in the nature of certiorari, quashing and setting aside the order dated 07.06.2022 (Annexure-8) passed by the Learned Commercial Taxes Tribunal, Jharkhand at Ranchi in JR 47 of 2020 (A.Y. 2014-15-VAT Proceedings) dismissing the revision application filed by the petitioner, especially since the Learned Tribunal has failed to appreciate the impact of the regular assessment order on the penalty imposed before assessment.

(ii) For the issuance of an appropriate writ/order/direction including a writ in the nature of certiorari, quashing and setting aside the order dated 24.07.2019 (Annexure-4) passed by the Learned Commissioner of Commercial Taxes in Revision Case No. CC(S) 460 of 2016 by which the revision petition has been dismissed in a summary manner.

(iii) For the issuance of an appropriate writ/order/direction including a writ in the nature of certiorari, quashing and setting aside the order dated 29.04.2016 (Annexure-3) passed by the Joint Commissioner of Commercial Taxes (Appeals), Jamshedpur Division, in JU-VAT-A-37/2015-16 by which the appeal filed by the petitioner has been dismissed on a misinterpretation of section 40 (2) of the JVAT Act.

(iv) For the issuance of an appropriate writ/order/direction including a writ in the nature of certiorari, quashing and setting aside the order dated 28.08.2015 (Annexure-2) passed by the Assistant Commissioner of Commercial Taxes, Urban Circle, Jamshedpur, and the consequential demand notice (Annexure-2/1), wherein penalty of Rs.1,97,930/- under section 40(2) of the JVAT Act has been levied on the petitioner.

3. Brief facts of the case as it appears from the averments of the writ application is that the petitioner is primarily engaged in performing civil contract jobs for various Government Departments. For the work done by the Petitioner, the final bills are prepared by the said Government Department itself after taking into account the measurements and quantity of work done. Tax is deducted at source by such Department at the time of making payment. As and when the Petitioner receives the bills prepared by the Department and the Tax Deducted at Source (“TDS”) certificate, it files its monthly return.

During the relevant assessment year, i.e., 2014-15, the Petitioner had filed its monthly returns only for the months of July and October 2014 declaring its turnover to be Rs.3,50,783/- and Rs.5,50,504/- respectively. Monthly return for the month of March, 2015 was filed on 27.4.2015 as NIL return since no bill/TDS certificate had been issued by the Government Department till such date. Thus, the Petitioner had filed the following monthly returns during A.Y, 2014-15.

On 01.07.2015, the Executive Engineer, Rural Development Special Division, Jamshedpur, issued a TDS certificate to the Petitioner on the basis of bill prepared by the Department for the month of March 2015 amounting to Rs.6,73,233/-. Petitioner filed its revised return for the month of March, 2015 on 5.8.2015 declaring its turnover for the said month to be Rs.6,73,233/-. After the filing of the revised turnover for the month of March 2015, the Petitioner’s gross turnover for A.Y. 2014-15 amounted to Rs.15,74,250/- as explained herein below:

On 28.08.2015, penalty order was passed under Section 40(2) of the JVAT Act. The Respondents have notionally calculated tax on the concealed turnover @ 14% to be Rs.65,976/-. Consequently, penalty of R