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2014 (8) TMI 443 - KERALA HIGH COURTRelease of gold seized - Combined proceedings under Income Tax and KVAT - Seizure of 6280 grams of gold from the business premises during seizure – Order for penalty proceedings passed u/s 67(1) of Kerala Value Added Tax Act, 2003 – Limitation - Held that:- The Income Tax Department having no subsisting claim, what would arise for consideration is the sustainability of the final order, passed by the Commercial Taxes Department - Commissioner of Income Tax, the 4th respondent to release the gold immediately to the petitioner, without fail and within two weeks from the date of production of the certified copy of this judgment. Penalty proceedings under KVAT but no proceeding for non registration - Held that:- The penalty proceedings was commenced on 19.01.2010, immediately after the seizure was effected - the limitation period was one year for the disposal of the penalty proceedings and it should be made within the time stipulated, from the date of detection of the offence and that the order passed beyond the period of limitation would be illegal – revenue being aware of the seizure of gold in the year 2010, and having initiated proceedings for penalty, chose not to take any proceedings against the petitioner for assessment or for failure to take out registration - The penalty proceedings too have been set at naught for reason of the same being barred by limitation - Even otherwise, the income tax authorities having found no sale of gold, being effected by the petitioner, it is a moot question as to whether the commercial tax authorities could ferret out a sale from the facts disclosed - there is absolutely no reason to take any proceedings at this point of time, under the Kerala Value Added Tax Act, 2003 – Decided in favour of Assessee.
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