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2009 (9) TMI 906 - HC - VAT and Sales TaxNon-payment of tax on the sale of old vehicles purchased under exchange mela - Held that:- It is the conceded position that the petitioner treats the sale of the new vehicle under the exchange scheme as full and complete with no debit balance of price in the customer's account. Therefore, purchase of old vehicle from the customer is complete when new vehicle is sold to him by recovering its value reduced by the cost of the old vehicle taken over from the customer. The purchase and sale of the old vehicle is either by or on behalf of the petitioner. Thus the Intelligence Officer, rightly found that the petitioner evaded payment of tax on purchase and sale of old vehicle by not disclosing the sales turnover in the return filed and therefore, the penalty was rightly levied under section 67(1) of the KVAT Act. The petitioner is directed to produce certificate from the assessing officer about payment of tax and interest on the sale of old vehicles as above for the above two years and if such certificate is produced, the Intelligence Officer will after rechecking the correctness of the same, reduce the penalty to 25 per cent of the tax liability and excess penalty, if any, paid should be refunded to the petitioner. However, if the petitioner does not produce proof of payment of tax and interest as above, then the penalty fixed by the Tribunal at equal amount of tax will stand confirmed.
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