2014 (1) TMI 569 - HC - VAT and Sales Tax

Penalty under Section 10-A - Use of Form-C and Form-31, without any authority - Held that - assessee has imported the goods. It is claimed that in Form-A, the assessee has attached the list mentioning the items for the purpose of import and re-sale. But, fact remains that without registration and without proper permission, he has imported the electrical goods and machinery and parts - Tribunal observed that on 08.01.1982, the assessee has submitted merely Form-A, but without any list. Concurrent findings have been recorded by both the appellate authorities. When the concurrent findings have been recorded by the appellate authorities, then no interference is required. The said findings has not been challenged - assessee has not attached the list along with the Form-A. Goods were imported without any registration and authority. When it is so, then the penalty levied is justifiable - Decided against assessee.

Summary

Issues:
Assessment of penalty under Section 10-A of the Central Sales Tax Act for unauthorized use of Form-C and Form-31 without proper authority.

Analysis:
The judgment involves two revisions filed by the assessee against the Sales Tax Tribunal's consolidated judgment sustaining penalties under Section 10-A of the Central Sales Tax Act for the Assessment Years 1983-84 and 1984-85. The assessee, engaged in the business of electrical goods, imported items using Form-C and Form-31 without proper authorization, leading to the penalty imposition by the Assessing Officer, which was upheld by the appellate authorities. The key contention raised by the assessee's counsel was the absence of any refusal or rejection of registration for the imported items, emphasizing the lack of mala-fide intention to justify the penalty. The counsel cited relevant case laws to support the argument for penalty cancellation.

The court examined the submissions and observed that the assessee imported goods without proper registration and permission, despite attaching a list of items for import in Form-A. The court differentiated the cited case laws from the current issue, emphasizing the penalty aspect over exemption or registration matters. Notably, the court highlighted discrepancies in the application where specific items were not listed, casting doubt on the submission's credibility. The court upheld the Tribunal's findings, emphasizing the finality of concurrent findings by appellate authorities and citing relevant case laws to support the Tribunal's status as a final fact-finding authority.

Ultimately, the court found that the assessee's failure to attach the list with Form-A and import goods without proper authorization justified the penalty imposition. The court sustained the impugned order, dismissing both revisions filed by the assessee. The judgment underscored the importance of compliance with registration requirements and proper authorization for imports to avoid penalties under the Central Sales Tax Act.