9911796707
TMI Blog1996 (2) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed by the second revisional authority [the Board of Revenue (Taxes), Trivandrum] is brought before us by this petition under article 226 of the Constitution of India, for a further probe within the limits of jurisdiction. 2.. Certain facts need preliminary narration. The place of business of the petitioner, being M/s. R.P. Govindan Sons, Thalassery, was inspected by the Intelligence Squad, Agricultural Income-tax and Sales Tax, Kannur, on June 2, 1992. In the process a bill book bearing Nos. 14401 up to 15000 was seized having been found to have been used up to receipt No. 14748. The books of accounts were called for and also verified and in the process tax evasion with regard to (a) high speed diesel, and (b) motor spirit was found. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 38,611. 5.. It was urged that the approach of the authority in penalty matters is the approach requiring the standard of proof relating to the proceedings of quasicriminal character. It was also submitted that the imposition of maximum penalty in the absence of satisfactory grounds in support thereof would not be sustainable. Decisions were placed in support of the above propositions. 6.. The first revisional authority has seen that the stock difference has been actually found out on analysis of the stock recorded at the time of inspection with the petitioner's accounts. It is further found that unaccounted sale was also noticed on scrutiny of the bill book. Not only that, an offence of failure of keeping true and satisfactory ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate by a dealer who is liable to pay tax under section 5 when the sale is not by an oil company. 9.. The Board of Revenue also observed with reference to the position of law in regard thereto to observe that the court's approach to tax avoidance, when the petitioner is shown to have been practising large scale evasion, will have to be understood not to have acted bona fide in respect of the shortage in stock. It is further observed that unaccounted arrivals and sales is a regular phenomenon and only a small portion could be found on actual physical verification of stock. It is emphasised that it is a well-known fact that the stock destined for Mahe, nearer to Thalassery, are available for diversion to Kerala because of the tax difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with proceedings of quasi-criminal character. The learned counsel also submitted that under section 45A normally a penalty of Rs. 5,000 is levied and double the amount of tax evasion is a rare occasion. None can even think of disputing the general nature of the submissions. Even the counsel, when confronted with the provision that in a situation of tax evasion, double the amount of penalty in relation to the amount of tax evaded is the maximum in relation to a situation of tax evasion. 13.. The learned counsel strenuously submitted that the facts and circumstances would not justify imposition of maximum penalty, being double the amount of tax evaded. 14.. In considering this submission, in the first instance we have to take into account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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