Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2010 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (10) TMI 963 - HC - VAT and Sales TaxWhether in view of the language of the Explanation the burden of establishing that the appellant is not liable for penalty is on the appellant and the appellant is bound to prove all the necessary facts in order to discharge that burden including the fact that the goods in question were in fact used in the Union Territory of Lakshadweep? Held that:- Neither of these factors were indicated in the show-cause notice and therefore could not have validly formed part of the grounds which could lead to the conclusion that the sales in issue were not genuine apart from the fact that it was not the case of the Department in the show-cause notice that the sales were not genuine. Their simple case as already noticed from the show-cause notice is that the goods did not actually reach the Union Territory of Lakshadweep. It is possible in a given case where the sales are undisputedly genuine, the purchaser after purchasing the goods may change his intentions originally communicated to the vendor and alter the destination of the goods. Merely because the goods did not reach the destination in such a case it cannot be said that the sale itself was not genuine. Thus we are of the opinion that the order dated December 28, 2006 levying penalty on the company cannot be sustained and the same is required to be set aside. For the same reasons, we are of the opinion that the order of assessment cannot be sustained.
|