Regarding waiving off of penalty under the Amnesty Scheme.
been noticed that penalty imposed u/s 86(15) is not waived of in case of some
dealers who have opted Amnesty Scheme. Penalty u/s 86(15) is imposed for
preparation of records and accounts in a manner that is false, misleading or
deceptive. In some cases, maintenance of books of accounts may have resulted
into creation of tax deficiency for which assessment u/s 32 may
been framed for tax and interest besides making penalty assessment u/s 33for
the above said violation. If such dealers have opted the Amnesty Scheme, then
penalty should be waived off on payment of tax, interest stated in notice of assessment
issued in Form DVAT-24.
if preparation of records/accounts does not result into any tax deficiency and
only penalty has been imposed for preparation of books of accounts in a false,
misleading and deceptive manner, then penalty cannot be waived off under
Amnesty Scheme. In such cases dealer is not eligible to seek relief under the
scheme. This issues with the approval of Commissioner Value Added Tax conveyed
vide Diary No. 1308 dated 01/09/2014.