9911796707
TMI Blog2006 (9) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... . Several cases reaching this court prove that Mahe is used as a pocket for evasion of sales tax legitimately due to the State of Kerala. In fact, most sales accounted in Mahe take place in Kerala in a clandestine manner. This is because relatively much lower rate of tax is payable on goods under the Pondicherry General Sales Tax Act. Therefore tax which would not otherwise be due to that Government gets paid there on account of parties accounting Kerala-sales in Mahe. For example, the product involved in this case is ghee, rate of tax for which in Kerala during the relevant year was 10 per cent whereas the rate of tax in Mahe was one per cent. On enquiry with the seller of RKG brand ghee at Kankeyam in Tamil Nadu, the Sales Tax Intelligenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatutory provisions on assessment, the Tribunal by detailed order set aside the appellate order and restored the assessments. It is against this order that the petitioners have filed these revision petitions. During hearing, counsel for the petitioners contended that assessment in the first place should have been made under section 30B(3) of the Act, and if it is made, it should be made on the driver or owner of the vehicle. However, we find from the order of the Tribunal that the Tribunal has confirmed the assessment as one passed under section 17(3) of the Act. The question therefore to be considered is whether the assessment is to be made on the owner or driver of the vehicle as claimed by the petitioners. In order to appreciate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vehicle or vessel, such owner or driver or person-in-charge of the vehicle or vessel shall be jointly or severally liable to pay tax which shall be assessed and recovered in accordance with the relevant provisions of this Act, irrespective of the limit of any turnover together with an amount of penalty not exceeding twice the amount of such tax as may be assessed, after having given to the person or persons aforesaid an opportunity of being heard by the assessing authority under whose jurisdiction the check-post is situate. (4) . . . Apparently petitioners' contention that driver or owner of the vehicle should be assessed under sub-section (3) above is correct. However, the question involved in this case is whether the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed C forms obtained from Mahe and transported the goods through Kerala without surrendering form No. 27C at the State border check-post, the presumption of sale of goods in Kerala under the above provisions is available. The further inference is that the clandestine sales in Kerala are organised and done by the petitioners. If petitioners have brought goods and sold in Kerala, turnover of which is above non-taxable limit, liability for payment of sales tax is automatic by virtue of charging section, namely, section 5. The question of assessment under section 30B(3) on driver or owner of the vehicle arises if the department cannot establish the actual person who brought, and sold goods in Kerala. Section 30B is only protective provision to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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