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2017 (5) TMI 1396 - HC - VAT and Sales TaxPenalty - suppression in payment of sales-tax under the KGST Act, 1963 - case of appellant is that the levy of works contract tax and the penalty thereon is beyond the legislative competence and powers of the State of Kerala and therefore there cannot be any levy of tax or penalty under the KGST Act - Held that: - it is rather clear that the liability to pay tax would arise only if the goods are used in a works contract - the terms of the contract clearly envisages that the goods are brought to the State by interstate movement, it gets terminated at the work site resulting in completion of interstate sale envisaged under the CST Act - this is a case in which penalty had been imposed on the assessee under Section 45A of the KGST Act. Penalty can be imposed only if there is deliberate suppression of turnover. In the light of the principles laid down, the question to be considered is whether there was deliberate contumacious conduct on the part of the assessee in declaring the goods as exigible for tax under the works contract - the matter is remitted back to the 1st respondent for fresh consideration of the revision petition - petition allowed by way of remand.
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