M/S. ARUL & CO. vs STATE OF T.N.

The Supreme Court upheld the dismissal of the writ petition by the Madras High Court, affirming the legality of the tax levy against the appellant as there was no scope for interference. However, the Court set aside the penalty imposed on the appellant, referencing the findings in Civil Appeal No. 5134-35 of 2002. The judgment clarifies the distinction between tax levy and penalty imposition under relevant tax statutes.