- (1.) We have heard learned counsel appearing for the assessee.
(2.) The petitioner is a partnership firm carrying on business of purchase and sale of cement. A survey was made by Assistant Commercial Taxes Officer, Ward-II, Anti Evasion, Bikaner, in which the petitioner was found to be selling cement on lesser price than the total purchase price of the cement. A show cause notice dated 6.6.2014 was issued, calling upon the petitioner as to why input tax credit of Rs.16,31,935/-, being difference in purchase value and sale value of the cement, may not be denied, and for levy of penalty under Section 61 of the Rajasthan Value Added Tax Act, 2003 (for short, 'the VAT Act, 2003'). The petitioner filed a detailed reply on 17.6.2014, alongwith trading account, and submitted that he has not sold the product on subsidized price.
(3.) The petitioner was subjected to assessment for the year 2014-15, in which the Assessing Officer, by his order dated 17.6.2014, levied penalty under Section 61 of the VAT Act, 2003 to the tune of Rs.4,73,520/-.;