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2015 (1) TMI 899 - KARNATAKA HIGH COURTImposition of penalty for contravention of carrying the goods without valid documents- contravention of Section 53(2)(b) of the Act.- Intention to evade Duty - Held that:- Transporter is transporting the goods from Surat to Hubli. The consignee has paid transportation charges for the same. The consignment copy clearly shows the place where the goods have to be unloaded. The transporter is from Hyderabad. If the driver employed by the transporter fails to unload the goods in Hubli and carries the goods nearly 400 kms., beyond Hubli, his explanation that by a bona fide mistake it was carried thus far cannot be accepted. More over the driver of the vehicle has categorically stated that he was asked to transport the goods to Trichy in Tamil Nadu and that is why the lorry was parked in the border of Tamil Nadu at Siddlaghatta. Therefore, it is clear the transporter resorted to the above modus operandi to hoodwink the authorities at the check-post and wanted to pass on the goods to the dealer in Tamil Nadu without paying any tax in the State of Karnataka. It is a different matter if the vehicle was intercepted and the vehicle was brought back to Hubli, goods were unloaded and 'C' Forms were issued, it is an afterthought. In that view of the matter, the assessing authority was fully justified in imposing the penalty for contravention of carrying the goods without valid, documents. The First Appellate Authority was not clear in his mind, though he observed that the conduct of the transporter results in suspicion but nonetheless he reduced the penalty. Either the penalty is payable or not payable. In one breadth he cannot say there is no contravention and in another breadth he cannot say the conduct of the transporter is suspicious and reduce the penalty. The Tribunal was in total error in holding that the transporter was carrying the goods with valid documents. The documents which were carried in the vehicle had no validity beyond Hubli to transport the said consignment from Hubli to Sidlaghatta. This aspect is completely missed by the Tribunal. In that view of the matter, the order passed by both the appellate authorities are unsustainable - Decided in favour of Revenue.
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