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2009 (7) TMI 1171 - KERALA HIGH COURTSection 44(10) of Kerala Value Added Tax Act, 2003 (and the provision under which penalty is levied, namely, section 44(8) ) challenged as illegal and unconstitutional Held that:- No violation of article 14 because dealers engaged in storing goods in undeclared godowns without giving prior intimation to the registering authority are a class different from the other class of dealers who store the goods in declared godowns and in undeclared godowns after prior intimation in writing to the registering authority in terms of the Rules. So much so, we are of the view that there is no violation of article 14 as well. Therefore, the challenge against constitutional validity of section 44(10) was rightly turned down by the learned single judge and we uphold the judgment in this regard. The maximum penalty levied at half the value of goods found in undeclared godowns under section 44(8) read with section 44(10) is not tenable. Discretion provided to the officer in regard to quantum of penalty itself indicates that he has to consider facts relating to each case and penalty should be levied based on the gravity of the offence. Appeals partly allowed vacating the penalty orders, but with direction to the officer to reconsider penalty after giving opportunity to the appellant to produce records and evidence in support of their contentions.
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