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2013 (12) TMI 1181 - HC - VAT and Sales TaxSuppression of actual sales of normal latex Held that - The single Judge found that the purchase is seem to have been made from farmers and WH which means warehouse - there is an overwriting in stock register with reference to the date, 5.4.2004 - Thus, it is found that the entry with reference to the date is doubtful. Shortage of centrifuged latex Unaccounted of sales of cenex Held that - The single Judge found that there was no material before the first revisional authority to have concluded the issue by stating that the officer has not taken into account the opening stock of 353 barrels and the centrifuged latex in various tanks of 147 barrels - The first revisional authority in fact found fault with the officer in omitting to take note of the stock contained in the said 147 barrels - if there was any such claim on the part of the dealer regarding the stock of 147 barrels the same would have been brought to the notice of the Intelligence Officer at least when they filed their explanation on 28.07.2004 - the contention was an afterthought which should not have been taken note of the by the first revisional authority - Unaccounted of sales of cenex by the petitioner cannot be confirmed and requires reconsideration. Penalty on unaccounted transactions Transactions detected from the notebook, outward register and inward register Held that - The Single Judge confirmed the findings of the second revisional authority after confirming that the findings were justifiable Decided partly in favour of Petitioner.
Issues:
Challenge to order restoring penalty imposed on petitioner under KGST Act. Analysis: The petitioner, engaged in manufacturing centrifuged latex, challenged the penalty imposed for alleged tax evasion. The Intelligence Officer alleged stock variation and unaccounted sales, leading to a penalty of Rs.33 lakhs. The petitioner disputed the allegations, providing explanations for the discrepancies. The 1st respondent imposed the penalty, later reduced to Rs.3,20,000 by the 2nd respondent. However, the 3rd respondent restored the original penalty through Ext.P10 order, citing discrepancies in the petitioner's accounts. The petitioner contended that the findings were baseless, especially regarding the alleged unaccounted sales. The learned Single Judge partially allowed the writ petition, upholding Ext.P10 but requiring reconsideration of the unaccounted sales of cenex. The petitioner's counsel argued that Ext.P10 was unjustified as the allegations lacked basis and the unaccounted sales did not exist. The 3rd respondent's authority to initiate proceedings under Section 45A of the KGST Act was acknowledged. The dispute over the purchase of latex barrels and unaccounted sales to M/s. Njavallil Latex (P) Ltd. was thoroughly examined. The 2nd respondent's findings were contrasted with those of the Intelligence Officer and the Commissioner, with the learned Single Judge ultimately upholding Ext.P10 based on the evidence presented. Regarding the shortage of centrifuged latex, the first revisional authority's oversight of the stock in tanks was contested. The 3rd respondent dismissed this claim as an afterthought, not raised earlier. The unaccounted sales of cenex to M/s. Njavallil Latex (P) Ltd. were deemed inconclusive and needing further review. The penalty imposed on unaccounted transactions from various registers was upheld, except for the cenex sales, requiring reconsideration by the 3rd respondent. The judgment affirmed most findings by the authorities and the learned Single Judge, with only one issue remitted for reconsideration. The petitioner's request for further scrutiny was denied, as the factual findings were deemed conclusive and legally sound. Consequently, the writ appeal was dismissed, upholding the decision based on the evidence and legal analysis presented.
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