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TMI Blog2015 (7) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the investigation officer. Thereafter physical verification of the goods under transport in the goods vehicle was taken up immediately. On verification it was noticed by the officer that the goods vehicle was carrying 14,61,600 pouches of 1.8 gms each, Pan Parag-Gutkha which was packed in 60 bundles with total weight of 2630.880 kgs. The inspecting officer has valued the goods in the vehicle based on Maximum Retail Price(MRP) at Rs. 14,61,600/-. Despite repeated demands, the driver did not produce any document pertaining to transport of gutkha. Hence, inspecting officer issued Goods Consignment Endorsement bearing No.GCE-18/10-12 dated 29.07.2010. 2. Within half an hour thereafter i.e., after detention of the vehicle, one Sri.Rilesh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osing penalty of Rs. 3,13,075.00ps (amounting to double the amount of tax). Being aggrieved by the said order dated 04.08.2010, appellant filed an appeal before the Joint Commissioner of Commercial Taxes (A), Bengaluru-20 in KVAT.AP.No.1495/10-11. By a non speaking order the Joint Commissioner of Commercial Taxes (Appellate Authority) allowed the appeal on 07.04.2012 by exercising the powers under section 62(6) of the Act as per Annexure-C. 4. When the facts stood thus, a show cause notice came to be issued by Revisional Authority/Additional Commissioner of Commercial Taxes, Zone-3, Bengaluru exercising suo moto powers under section 64(1) of the Act. The Revisional Authority after due notice to the appellant and after hearing the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. The sum and substance of the arguments of Sri.Satynarayana, learned counsel for appellant is that appellant cannot be said to be at fault and therefore the first appellate authority was justified in setting aside the order passed by the original authority imposing penalty. In other words he submits that the impugned order of revisional authority exercising power under section 64(1) of the Act is bad in the eye of law. 7. Said submissions were opposed by Sri.K.M.Shivoyogiswamy, learned Additional Government Advocate appearing on behalf of respondent. 8. Undisputedly the goods vehicle bearing registration No.KA-40-2300 at about 11.00 A.M. on 29.07.2010 was intercepted by Deputy Commissioner of Commercial Taxes (Vigilance), Bengaluru an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.S.Market, O.T Pete Cross, Bengaluru-53 in which the company has stated that the copy of invoice is with the driver and it continues to be with the driver who was afraid of the inspecting officer and hence he could not speak and satisfy the authorities by producing the bill. Said fax message further requested for early release of the vehicle. All the aforementioned admitted facts clearly reveal that the person in-charge of the vehicle or the person who came within half an hour after interception of the vehicle calling himself as authorised officer of appellant company did not produce any record or documents pertaining to the goods under transport. 9. Provisions of section 53 of the Karnataka Value Added Tax Act are enacted mainly to preve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the goods is a clear violation of clause (b) of sub-section(2) of section 53 of the Act. Under those circumstances revisional authority was fully justified in interfering with the order passed by appellate commissioner which has treated the matter lightly, ignoring the mandatory provisions of law and granted the relief to the assessee on the ground that there was no intention to evade tax. Order passed by appellate commissioner though runs to number of pages is unreasoned. The order of appellate Commissioner merely mentions the arguments advanced by the appellant; however the only reason assigned by the appellate commissioner while setting aside the order imposing penalty is that there was no intention on the part of the appellant to ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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