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TMI Blog2012 (10) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel makes a passionate plea for reduction of the quantum of penalty imposed. We find that the first revisional authority has modified the penalty imposed considerably, a measure of indulgence which we would say was misplaced. But the State having not challenged it, we are of the opinion that the facts and circumstances does not compel us to make any further modifications. Sales tax revision rejected. - S.T. REV. Nos. 25 to 31 of 2012 - - - Dated:- 19-10-2012 - THOTTATHIL B RADHAKRISHNAN AND VINOD CHANDRAN K., JJ. For the Appellant : Harisankar V. Menon, Mahesh V. Menon and Smt. Meera V. Menon For the Respondent : Sojan James, Special Government Pleader (Taxes), K. Vinod Chandran, J These revisions are filed aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner had been carrying on the business in the name of M/s. Welgate Audio and Video Complex. The revision petitioner has a case that his business involved only lending of compact discs(CD) and that the same was not taxable and if at all taxable, the turnover was below the limit prescribed under the Kerala General Sales Tax Act (hereinafter referred to as the KGST Act ). Quiet interestingly, the revision petitioner also had a contention that he had paid tax under the compounding provision of the KGST Act for the year 1993-94. It is not discernible as to how any such payment was made without registration and without permission of the assessing officer. The main thrust of the argument put forward by the learned counsel Sri.Harisankar V. Meno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was noticed and penalty proceedings were initiated under Section 45A of the Act. In certain years, the profit and loss account prepared by the revision petitioner's Chartered Accountant was scrutinized and sales turnover as also rent collection detected therein were adopted as the sales turnover. This was the turnover conceded before the Income Tax authorities and on which income-tax was paid. 4. For the year 2004-05, it was also revealed that the company had effected purchase of rights of feature films from movie distributors for making video copies in cassettes, compact disks and digital discs; for sale. The movies so recorded were sold under the trade mark Welgate Group to one M/s. Welgate Marketing who sold the video cassettes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome with respect to sales turnover and rent collection. These were the figures adopted to impose penalty at double the tax sought to be evaded in all the years. 6. For the year 2004-05, as noticed above, there was a huge turnover suppression resulting from purchase of video rights of films and sale of video cassettes/discs under such rights. On calling for objections, the revision petitioner produced audited financial statement of the company for the year 2004-05 disclosing the turnover of ₹ 59,86,657.68 as against the turnover of ₹ 9,60,00,000/- adopted by the department. The documents which were recovered from the business premises were the basis of such adoption of turnover made by the department. The recovered documents r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings under Section 45 A was the sales suppression and tax evasion found by the Intelligence wing of the Commercial Taxes Department based on the Income tax returns of the revision petitioner. The Tribunal also found that in most of the years what was adopted was the turnover reported by the revision petitioner before the Income-tax authorities. The income conceded before the Income Tax authorities was only with respect to the turnover of the business of the revision petitioner. For the other years, the profit and loss Account of the revision petitioner, discloses the sales turnover as also rent collection. It was these figures that was adopted by the Intelligence Officer for imposing penalty. Noticing that the revisional authority had grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer. The revision petitioner would reiterate the refrain of accounts read in CD form having been taken by the Police and kept with the court. The entire documents, the discs and the computer available with the criminal court has now been examined. The refrain is akin to flogging a dead horse. We do not think, the revisional jurisdiction conferred on us could be invoked to interfere with the factual findings, recorded by the three lower authorities concurrently and with elaborate discussions. 9. The verification of the books of accounts or the lack of it projected by the revision petitioner is merely a mirage and there cannot be any verification for the simple reason of the books of accounts being not in existence. It was asserted to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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