9911796707
TMI Blog2022 (1) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the Act, whereby the order passed by the first appellate authority has been set aside and the order of reassessment passed under Section 39(2) of the Act for the tax periods April 2010 - March 2011 has been restored. 2. The appellant claims to be a proprietary concern, engaged in the business of manufacture and sale of machineries and instruments for electrical and electronic goods. The appellant is a registered dealer under the provisions of the Act and the Central Sales Tax Act, 1956 ('CST Act' for short). The appellant filed returns in VAT 100 for the tax periods in question. The prescribed authority, on verification of the VAT return held that some of the selling dealers did not furnish tax compliance, to declare the sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the other selling dealers who had the valid registration at the time of issuing invoices proceeded to allow the appeal granting the relief of input tax credit as claimed by the assessee. It is thus evident that the first appellate authority having applied its mind has arrived at a conclusion in extending the input tax credit only in genuine transactions and disallowing the same wherever it is not found to be justifiable. In such circumstances, the revisional authority had no jurisdiction to invoke the provisions of Section 64(1) of the Act. Accordingly, seeks to set aside the order of the revisional authority allowing this appeal. 5. Learned counsel appearing for the Revenue would submit that the order of the first appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to be taxed, or liable to tax at a lower rate, or that a deduction of input tax is available, the prescribed authority shall, on detecting such issue or production, direct the dealer issuing or producing such document to pay as penalty:- (a) in the case of first such detection, three times the tax due in respect of such transaction or claim; and (b) in the case of second or subsequent detection, five times the tax due in respect of such transaction or claim. (3) Before issuing any direction for the payment of the penalty under this Section, the prescribed author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... priate to set aside the orders of the revisional authority and first appellate authority and restore the matter to the file of the first appellate authority to reconsider the matter in the light of the material now placed before this Court, keeping in mind the legal principles rendered by this Court in the case of State of Karnataka v. M/s. Tallam Apparels, STRP 82/2018 (D.D. 26.2.2021) and M/s Bhavani Enterprises (since deceased by LRs) v. The Additional Commissioner of Commercial Taxes, STA 71/2013 (D.D.13.6.2018) as well as M/s Onyx Designs v. The Assistant Commissioner of Commercial Taxes, W.P.Nos.17989 & 23971/2018 (D.D.17.6.2019). An appropriate decision should be taken by the first appellate authority, after providing an opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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