2005 (7) TMI 629 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order determining tax liability and penalty under Karnataka Sales Tax Act, 1957 based on ownership of goods carriage vehicle and liability of the owner for tax payment and penalty.

Analysis:
The petitioner, claiming not to be the owner of the goods in question, challenges the tax liability and penalty imposed on him as the owner of a goods carriage vehicle used for transporting goods for another company. The petitioner argues that he should not be held liable for the tax and penalty. However, Sections 28AA(4) and (5) of the Act clearly state that the owner of the vehicle is liable to pay tax and penalty if relevant documents are not produced. The provisions empower tax assessment and penalty imposition on the owner of the vehicle in such cases, irrespective of ownership of the goods. The court notes that such provisions do not violate the Constitution of India, specifically Article 265, regarding tax imposition.

The court highlights that the correctness of the tax amount is not within the purview of the writ jurisdiction if the petitioner has not pursued the statutory remedy of appeal. The court emphasizes that the statutory appeal process should be availed of for challenging the tax amount rather than through a writ petition. Consequently, the writ petition is dismissed, affirming the tax liability and penalty imposed on the petitioner as the owner of the goods carriage vehicle, as per the provisions of the Karnataka Sales Tax Act, 1957.