2012 (7) TMI 1111 - HC - VAT and Sales Tax

Summary

Issues Involved: Challenge to Tribunal orders regarding penalty for tax evasion and input tax credit on suppressed purchases.

Summary:
1. The assessee, engaged in hardware business, challenged penalty orders for tax evasion. Inspection revealed sales and purchase suppression, leading to penalty imposition u/s 67 of Kerala VAT Act. Appellate authorities modified penalties but upheld suppression findings. Assessee's request for input tax credit on suppressed purchases was rejected. Tribunal reduced penalty to 1.5 times tax evaded.

2. Alleged Unaccounted Sales: Tribunal found estimated unaccounted sales based on parallel accounts. No actual sales reflection noted.

3. Purchase Suppression: Tribunal confirmed purchase suppression despite appellant's contentions. Repetition in estimation denied. Apportionment between 4% and 12.5% items allowed by first Appellate Authority.

4. Input Tax Credit: Assessee sought credit for suppressed purchases with evidence of tax collection. Court cited precedent denying credit for unrecorded purchases.

5. Penalty Imposition: Tribunal upheld penalty at 1.5 times tax evaded. Court modified penalty to actual tax amount due to circumstances of the case.

Conclusion: Court declined to address questions of law as they were factual issues. Confirmed lower authorities' findings on suppression and penalty, but modified penalty amount. Input tax credit denied based on unrecorded purchases.