Penalty for late filing of MVAT Audit Report was held to be discretionary qua levy as well as qua quantum of levy.

Penalty for late filing of MVAT Audit Report was held to be discretionary qua levy as well as qua quantum of levy by the Mumbai High Court. As per the facts of the case, the Sales Tax Tribunal reduced the quantum of penalty for delay in filing MVAT Audit Report for FY 2006-2007 from Rs. 83,013/- to Rs. 25,000/-. This was upheld by the Mumbai High Court in its recent judgement (September, 2011).

The Mumbai High Court judgement is appended for your information.

Addl Commr Sales Tax V Ankit International - Mum HC