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TMI Blog2004 (6) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the petitioner he had not effected any transactions which are exigible to tax under the Act. It is the case of the petitioner that the statement was given by him to the enforcement officials only under threat and coercion. The petitioner in his objection has also stated that the petitioner had obtained raw cashewnut rejections from various factories in Kollam and he supplied the same to a Bombay party as their agent, that the sale proceeds were received by way of telegraphic transfers which were encashed through the petitioner s savings bank account and the said sale proceeds were handed over to various factories from where he had procured the raw cashewnuts. It is further stated that the petitioner had received only a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that even assuming that the petitioner had entered into transactions as stated in the statement given to the Enforcement Directorate, it is still evident that the transactions represented by the amounts received by way of telegraphic transfers from the Bombay party can never be treated as transactions falling under the Act. In other words, the contention of the counsel is that the transactions in question can be treated only as inter-State transactions in respect of which penalty proceedings, if any, have to be taken under section 10A of the Central Sales Tax Act, 1956. Counsel further submits that in this case even though the Enforcement Directorate had obtained the statement as early as in 1990, proceedings under section 45A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e detection by the Enforcement Directorate, petitioner had taken registration under the Act from the year 1991-92 with registration No. 12010784, which would also show that the petitioner had been engaged in the business of purchase and sales of cashewnuts. I have considered the rival submissions. Respondents had not furnished any material other than the statement obtained by the Enforcement Directorate based on the entries in the bank pass book of the petitioner to the effect that the petitioner had effected sale of cashewnuts to a Bombay party on two occasions. In the first revisional order also it is stated that this is the only material and that the assessing authority did not conduct any independent enquiry in the matter. One more i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party and had received sale proceeds in his favour by way of telegraphic transfers. The explanation of the petitioner, as already noted, was that he had procured cashewnut rejections from the factories in Kollam and sold the same to a Bombay party; sale proceeds received from the Bombay party were realised and it was made over to the respective factories and the petitioner had received only a sum of Rs. 1,500 as monthly remuneration. This explanation offered by the petitioner, as already noted, has not been accepted by the authorities since no material supporting the said explanation was made available before the authorities. In other words, the fact remains that the petitioner had admittedly effected certain transactions which are exigi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial one has to assume that the transactions are effected in the State itself. However, all the facts which I have stated earlier has got an impact in regard to the quantum of penalty to be imposed for these two years. Petitioner was under the bona fide impression that the transactions as explained by him were not exigible to tax under the Act or that he was not obliged to take registration under the Act. In the absence of materials other than the statement given by the petitioner and in the absence of an enquiry conducted by the assessing authority independently about the transactions of the petitioner and in view of the further fact that the authorities have not taken care to make the assessment under the Act on the disputed transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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