9911796707
TMI Blog2013 (7) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 order imposing penalty under Section 45 A of the KGST Act is under challenge in this writ petition. 2. The petitioner was a registered dealer under the KGST Act engaged in the trading of rubber sheets and is on the rolls of first respondent. By virtue of the relevant provisions of law, it is very much necessary to have a licence issued by the Rubber Board for pursuing the business. Though the petitioner was given such licence, it was cancelled by the Rubber Board, as per Ext.P1 dated 21/03/2003 and as a natural consequence, the petitioner had to wind up his business as such. He filed 'Nil' return in respect of April 2003. 3. While so, the petitioner was served with Ext.P2 notice dated 23/12/2003 proposing penalty under Section 45A, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions with this purchaser. It is true that Sri. N.J. Thomas Co. is not a running business and an assessee with arrears. In the circumstances, a further cross verification of records and cross examination is only a part of natural justice to ascertain the true state of affairs regarding the disputed sales. The assessing authority had straight away imposed the penalty on the basis of the extracts gathered. In view of the nature of the case, I find that the evidence are not sufficient against this applicant. Therefore, the penalty is set aside. The applicant is given a chance to cross examine the purchaser regarding the disputed purchase in the presence of the assessing authority. The applicant shall also furnish necessary evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books, Form 25 declaration etc. by virtue of his having worked as a part-time Accountant of the petitioner. It is also pointed out that, despite the clear direction to verify the records from the Rubber Board as ordered in Ext.P4, such a course was never pursued and there is no reference in this regard in Ext.P5. 6. When the matter came up for consideration before this Court on 14/08/2007, the following interim order was passed: G.P. takes notice for R1 to 3. Urgent notice to R4. There will be interim direction to 2nd respondent to call for and verify assessment records of 4th respondent, if he is a registered dealer and file a report whether he has returned the turnover of rubber purchased from the petitioner and paid tax during th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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