2026-VIL-844-MAD
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VAT High Court Cases

Tamil Nadu VAT Act, 2006 - Penalty for wilful suppression of turnover - Invokability of penalty provision without specific mention of expression "wilfully suppressed" in assessment order - Appellant submitted turnover in Form-WW but omitted the same from monthly returns filed throughout the financial year, which omission was discovered only after inspection of records by authorities after deemed assessment was completed - Whether penalty under Section 27(3)(b) of TNVAT Act for wilful suppression of turnover can be invoked when assessment order does not specifically use the expression "wilfully suppressed" but facts reflect suppression and escaped turnover - HELD - Mere replication or specific mention of the expression "wilfully suppressed" in the assessment order is not a necessary pre-condition for invoking penalty provisions for wilful suppression. If the material on record clearly discloses wilful suppression then penalty imposed by invoking Section 27(3)(b) cannot be questioned - In the present case despite showing turnover in Form-WW, the appellant admittedly and conveniently omitted it from monthly returns. Form-WW was filed after the due date for deemed assessment and turnover was not truly reflected in monthly returns, which clearly proves intention of appellant to suppress the turnover - The omission in monthly returns was never explained by appellant throughout proceedings. The fact that assessment went through process of deemed assessment and thereafter inspection revealed discrepancies between Form-WW and monthly returns, establishes wilfulness - The findings of the Assessing Officer imposing penalty were rightly made based on documentary evidence even though specific expression "wilfully suppressed" was not used - The Tax Case is dismissed and order of Assessing Officer imposing penalty is upheld. Order of Appellate Authority setting aside the penalty is set aside – The appeal is dismissed
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