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TMI Blog2010 (11) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... elf. The balance items brought and sold under the guise of scrap were really found to be old parts recovered from dismantled vehicles. The attempt of evasion is established beyond doubt and therefore, the petitioner has no escape from the penalty. We therefore uphold in principle the orders of the lower authorities in confirming the penalty on the petitioner for evasion of tax. It is not known whether the petitioner remitted the tax or whether the turnover is assessed to tax at higher rate. Since the petitioner is only a small scrap dealer, we feel the petitioner can be granted reduction of penalty provided the petitioner pays tax based on the assessment orders. We accordingly grant a conditional reduction of penalty to 50 per cent of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that is four per cent is correct. The intelligence officer found on inspection that the items sold are spare parts of automobiles usable as such and so much so tax payable is at the rate shown under the specific entry in the Act and the petitioner's effort by showing sale as by weight is only to avoid payment of actual rate of tax. Even though penalty at double the differential tax amount is levied by the intelligence officer, in appeal the first appellate authority though upheld in principle the levy of penalty on the appellant reduced the penalty to equal amount of tax. On second appeal, the Tribunal confirmed the same against which these revisions are filed by the petitioner. During hearing, counsel for the petitioner relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold. This does not mean that the petitioner can claim rate of tax applicable to scrap for old spare parts sold as such by him. Scrap is invariably old but old is not always scrap is true of automobile spares. So much so, the findings of the intelligence officer that the rate of tax applicable for sale of old automobile spare parts is the rate applicable to automobile spare parts is perfectly correct. The next question to be considered is whether the penalty was rightly sustained by all the authorities. On facts and based on records verified by the intelligence officer what is clear is that the petitioner made an attempt to camouflage the spare parts sales as sale of scrap because the bills disclose the price fixed based on weight which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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