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2021 (3) TMI 1033 - HC - VAT and Sales TaxRevisional powers to enhance the penalty levied by the Commercial Tax Officer exercising discretionary powers vested in him under Section 53 (12) of the KVAT Act, 1957 by three times - Whether the order passed by the Commercial Tax Officer imposing minimum penalty exercising discretionary powers vested in him as per Section 53(12) of the KVAT Act is erroneous? - HELD THAT:- Section 53(2)(b) of the Act casts an obligation on the owner or person in charge of the goods vehicle to carry with him such documents as may be prescribed in respect of the goods carried in the goods vehicle. The consequences of non-compliance are prescribed under Section 53(12)(a) of the Act. The Commercial Tax Officer has power to levy penalty double or triple the amount of tax leviable in respect of the goods under transport, in case sufficient cause is not shown. Thus, the Commercial Tax Officer has discretion in the matter of imposition of penalty and the question of imposition of penalty is not automatic. In the instant case, the appellant, in reply to the notice issued to him proposing to levy penalty, has stated that one of his relatives in Kannur, Kerala had expired and therefore he had to rush to Kerala and was unable to raise a tax invoice or generate e-sugam before commencement of movement of goods. The appellant undertook to produce the books of accounts and to discharge the tax liability thereon. The aforesaid explanation was accepted by the Commercial Tax Officer as well as by the First Appellate Authority - thus, Revisional Authority exceeded its power in interfering with the concurrent findings of fact recorded by the Commercial Tax Officer as well as by the First Appellate Authority and in imposing three times the penalty on the amount of tax, merely on the ground that the assessee had contravened the provisions of Section 53(2)(b) of the Act. Appeal allowed - decided in favor of appellant.
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