Saumitra Dayal Singh, J. - (1.) Heard Sri Piyush Agrawal, learned counsel for the applicant-assessee and Sri B.K. Pandey, learned Standing Counsel for the opposite party. The present revision application is being decided finally, at fresh stage itself, with consent of both parties.
(2.) Upon hearing the parties, the question of law framed in the memo of revision have been reframed or dovetailed as below. Both sides have advanced submissions on those questions. (i)Whether penalty under Section 34(8) of the U.P. Vat Act, 2008 (hereinafter referred to as the Act) is mandatory ? (ii)Whether justification to impose penalty survived when the assessee had, of its own and prior to issuance of any notice in that regard, cleared the default in payment of T.D.S. amount together with interest ?
(3.) The revision relates to A.Y. 2010-11. Admittedly, this was the first year of business and assessment for the assessee as it was granted registration w.e.f. 20.05.2010; the assessee made payments to building contractors on which it made deductions of tax on source (T.D.S in short); however, that amount of T.D.S. was not deposited within time prescribed by law; nevertheless, the assessee deposited the same before issuance of any show-cause or other notice in that regard. Thus, the assessee, made deposits of various amounts i.e. Rs. 31,606/- (together with interest of Rs. 31,606/-), on 30.11.2011; Rs. 24,026/- (together with interest of Rs. 24,026/-), on 30.11.2011; Rs. 66,572/- (together with interest of Rs. 31,715/- vide three challans dated 21.2.2011, 9.4.2011 and 18.06.2011), and; Rs. 1,33,233/- (together with interest of Rs. 1,68,090/-), on 30.11.2011. Further admittedly, the entire amount of default of T.D.S. was cleared by the assessee together with interest.;