2011 (10) TMI 563 - HC - VAT and Sales Tax

Summary

Issues: Appeal challenging order of Additional Commissioner of Commercial Taxes, contravention of provisions of section 53(2) of Karnataka Value Added Tax Act, 2003, imposition of penalty on assessee.

Summary:
1. The assessee appealed against the order setting aside the first appellate authority's decision and restoring the check-post officer's order.
2. The incident involved a vehicle carrying 24 carton boxes without proper documents, leading to suspicion of tax evasion.
3. Physical verification revealed a bill hidden in one box, leading to a penalty proposal of Rs. 1,73,880.
4. The check-post officer imposed the penalty after objections were considered.
5. The Joint Commissioner found no tax evasion intent and set aside the penalty order.
6. The Additional Commissioner initiated suo motu proceedings and upheld the penalty due to non-tendering of documents as per section 53(2).
7. Assessee argued against penalty imposition, citing compliance with CST and presence of documents during checking.
8. The Government Advocate supported the penalty imposition.
9. Section 53 mandates carrying prescribed documents with goods during transportation.
10. Revisional authority justified penalty imposition for non-compliance with section 53(2) and evasion attempt.
11. The court partially allowed the appeal, upholding penalty but restricting it to the actual value of goods as per the bill.