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TMI Blog2015 (3) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... ARAN NAIR, SRI.V.K.SHAMUSUDHEEN FOR THE RESPONDENT : GOVERNMENT PLEADER SMT.LILLY.K.T. JUDGEMENT The petitioner is a person stated to be engaged in the business of second sale of duty paid goods. It is the specific case of the petitioner that insofar as he was engaged only in the second sale of goods within the State, he did not take out a sales tax registration under the Kerala General Sales Tax Act on the bona fide belief that the transactions entered into by him would not attract the levy of sales tax. The respondent Sales Tax Authority, however, initiated penalty proceedings against him for the assessment years 1999-2000 and 2000-2001 respectively. The proceedings culminated in Exts.P1 and P2 orders imposing a penalty on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of second sale set up by the petitioner was rejected solely on the ground that the evidence produced by the petitioner to prove the same was not reliable and acceptable. As regards the procedural formalities that were complied with by the respondents while confirming the penalty on the petitioner, it is pointed out that, based on the request of the petitioner, the persons from whom he had allegedly purchased goods for subsequent sale were examined and in the cross examination it was found that they had not transacted any business as claimed by the petitioner and that the said persons were either close relatives of the partner or employees of the firm through which the petitioner conducted his business. 3. I have heard Sri.N.Muraleedhar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity for cross examination. After examination and cross examination the intelligence officer has conducted re-examination and came to a definite finding with cogent reasons. The petitioner's contention that their major suppliers Arjun, House No.11/51, Rajaputra Street, Sulthanpet, Palakkad and T.Sivakumar 11/102, Joahiba, Court Road, Palakkad have not been examined in detail is not seen to be true, the Intelligence Officer has conducted detailed enquiry; the Municipal records for issue of trade licence to dealers were verified for the years 1998-99 to 2000-2001, the records revealed that these buildings had not been given licence as business places as per Municipal records. Moreover, spot enquiry conducted by the Intelligence Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption as second sales to comply with Rule 32(13) of the KGST Rules 1963 which reads: Every dealer in goods taxable at the point of first sales in the State shall if be is not liable to tax on such goods by reasons of his not being the first seller of the goods in the state obtained a certificate written and signed under neither on the other side of the bill or cash memorandum to the effect that the goods covered by the bill or cash memorandum had suffered tax at his (sellers) hands or at the hands of any other dealer mentioned in the certificate. The seller in such goods shall given such a certificate on every sale made by him . In a taxing Statute where an assessee that his case came with exemption the burden is on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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