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TMI Blog2011 (7) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner, which has held that the assessee is liable for payment of tax and interest. The appeal is allowed in part. The order of the revisional authority setting aside the order of the Joint Commissioner and restoring the order passed by the assessing authority in so far as payment of tax and interest is concerned is upheld. However, the penalty portion of the order of the assessing authority as well as the revisional authority is hereby set aside. Therefore, the assessing authority is directed to issue of fresh demand excluding the penalty portion - TAET No. 3 of 2010(KTEG) - - - Dated:- 29-7-2011 - KUMAR N. AND RAVI MALIMATH, JJ. For the Appellant : Kamath and Kamath, K.J. Kamath and K.G. Kamath For the Respondent : K.M. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner. The Joint Commissioner allowed the appeal holding that the transformer oil was brought into the local area as an input in the manufacturing of transformers. Therefore, the same was not liable for entry tax. Consequently, he held that interest and penalty imposed is also unsustainable and set aside the order passed by the assessing authority. The Additional Commissioner of Commercial Taxes by virtue of the power conferred under section 15(1) of the Act exercised suo motu proceedings and issued notice to the assessee and called upon the assessee to show cause as to why the order of the assessing authority should not be restored. In the show-cause notice, he clearly mentioned that the Joint Commissioner while passing the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entry tax is not leviable and in support of his contention, he places reliance on the Explanations, Schedule I and the notifications. 5. Per contra, the learned counsel appearing for the Revenue supported the impugned order. 6. As rightly pointed out by the Additional Commissioner, the Joint Commissioner who upheld the contention of the assessee has not looked into the subsequent notifications issued and in particular the Explanations I and II appended to the said notifications. For ready reference these Explanations are extracted hereunder: Explanation I. No tax shall be payable by a dealer on the goods specified in serial numbers 2, 3, 4, 7, 8 and 9 in the table above when brought by him into a local area for consumption or us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial and to be used as an input manufacturing of transformers, it is liable to tax at five per cent. Therefore, we do not see any error with the well considered order passed by the Additional Commissioner, which has held that the assessee is liable for payment of tax and interest. 9. However, when the Additional Commissioner himself is not sure about the liability of tax and when he has set aside the order of the assessing authority, it is obvious that these provisions did give rise to various interpretations and as to who was not liable for tax. In that view of the matter, imposition of penalty is uncalled for. Now the legal position is clear. The assessee cannot take advantage of these doubts and confusion in these provisions. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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