9911796707
TMI Blog2012 (10) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... through the banking channels i.e. by cheques and were not kept out of the books of account. There is nothing on the record to infer or conclude that the goods were meant for resale or use of manufacturing activity of the purchasing party. If the department had produced evidence in proof of the fact that M/s Aerens Entertainment Zone Limited has agreed to sell this project after its completion to a third party, then the matter would have been examined from that angle. In the absence of such evidence, there can be no escape from the finding that the goods were meant for self-consumption as these were to be installed by the consignee in the Festival City, Ludhiana Project. These goods having been made specifically for the project could be har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orth ₹ 54,11,951/- for trade after paying Central Sales Tax at the rate of 12.5%. Since the goods were of high value and were meant for trade being imported by an unregistered dealer, the goods and the vehicles were detained for further verification. After recording the statements of the drivers of the said vehicles, detention order dated 18.1.2008 was passed under Section 51(6) of the Act and notice dated 18.1.2008 was issued to M/s Aeren R Festival City, Jalandhar Byepass, Ludhiana to appear and produce the books of accounts and other documents to prove the genuineness of the transactions. When none appeared, the matter was referred to the Excise and Taxation officer cum Office Incharge, ICC, Dhabi Gujran (Patiala). The said officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of tax in Punjab State was not involved. It was also noticed that there was voluntary reporting at ICC and the goods were accompanied by proper and genuine documents complete in all respects. The Tribunal also recorded that payments for the transactions were made through the banking channels i.e. by cheques and were not kept out of the books of account. The conclusion of the Tribunal on the aforesaid premises was that an error had crept in on the basis of which the department had sought to conclude that there was an attempt to evade tax. Following findings recorded by the Tribunal are relevant:- "A close examination of all these documents would reveal that as a matter of fact, a project by the name of 'Festival City' at Villag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdly sent by way of stock transfer to Punjab Branch. This may be the reason for paying full CST on this interstate sale. This being a case of inter-state-sale, the element of tax of Punjab State was not involved. This is a case of voluntarily reporting at the ICC. The goods under transaction were accompanying proper and genuine documents, complete in all respects. The payments have been made through banking channels i.e. the cheques. In these circumstances, this transaction could not have been kept out of account books. In all probabilities, it has to be accounted for. More to the point, it is own observation of the ETO that the consignor and actual consignee are registered in Punjab. It is beyond comprehension as to on what basis, the ETO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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