9911796707
TMI Blog2009 (9) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... ns porting various consignments of timber from outside Kerala to the dealers in Kerala. Based on the declarations furnished, the Department made enquiries with the consignee, viz., the dealer for whom the petitioner brought the timber. However, he denied having transported the timber through the petitioner's trucks. Consequently, the Department issued notice under section 30B(4) of the KGST Act and proposed to levy tax and penalty in terms of the said provisions read with sub-section (3) of section 30B of the KGST Act. Even though the petitioner raised objection, tax was levied along with penalty at twice the amount of such tax. Though in first appeal, the order of the Intelligence Officer imposing penalty and tax was confirmed, in second a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch vehicle or vessel shall obtain a transit pass in the prescribed form for such goods from the officer-in-charge of the first check-post after his entry into the State and deliver it to the officer-in-charge of the last check-post before his exit from the State. (2) If the owner or driver or person in-charge of such vehicle or vessel fails to deliver the transit pass for such goods referred to in sub-section (1) to the last check-post, it shall be presumed that such goods which are liable to tax under this Act have been delivered within the State for sale: Provided that where the goods carried by such vehicle or vessel are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the onu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Act have been sold in the State by the consignor or the owner of the goods or the owner or driver or person in-charge of the vehicle or the person in-charge of the goods or all of them jointly and they shall be jointly or severally liable to pay tax on such sales which shall be assessed and recovered in the manner provided in sub-section (3). (5) For the purpose of this section, the owner or driver or person in-charge of the vehicle or vessel shall, unless he is a registered dealer under this Act, be deemed to be a registered dealer for assessment of tax under this Act." The question to be considered is whether penalty could be levied against a person proceeded under sub-section (4) of section 30B of the KGST Act. Sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e excluded from penalty. Discre tion is given to the authority only in regard to the quantum of penalty with upper limit up to twice the amount of tax. The cases covered by sub-section (4) are cases where goods are consigned or transported from outside the State to any part of the State in the name of bogus or non-existent persons or persons who could not be traced or cases where the apparent consignee or purchaser denies the transaction. In such cases, unless the consignor or owner of the vehicle or the person in-charge of the vehicle proves to the satisfaction of the assessing authority that particulars furnished in the declaration are true, it would be presumed that such goods, which are liable to be taxed under the Act, have been sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Legislature intended any relaxation for the latter category, who transports goods in bogus names. Therefore, we do not think, the Legislature intended penalty in the category covered by subclause (3) and no penalty for the category referred to in sub-clause (4). In our view, incorporation of sub-clause(3) in sub-clause (4) is only to avoid repetition of all the words used in sub-clause (3) for the purpose of assess ment and demand of tax and penalty under clause (4). In fact, what is clear from clause (3) is that subject to the ceiling on penalty provided thereto and the mandatory tax on turnover of goods even below the taxable limit, all the provisions of the Act with regard to the assessment and levy of penalty are applicable. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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