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2021 (8) TMI 546 - HC - VAT and Sales TaxLevy of penalty u/s 47(6) of KVAT Act - failure to carry a declaration in Form 8FA - HELD THAT:- Admittedly, the goods in transit were not accompanied by Form 8FA declaration. Rule 66(6)(ba) of the KVAT Rules, 2005 read with section 46(3)(e) of the Act provides for carrying declaration under Form 8FA while the imported goods are transported within the state. When the imported goods are not declared in the manner prescribed by the Act and the Rules, it opens a window of an opportunity to the dealer to suppress the transaction. Whether an actual suppression has taken place or not is not required to be considered when penalty is sought to be levied under section 47(6) of the Act. As held by the Division Bench of this Court in POLYMER DESIGNS AND MOULDINGS VERSUS STATE OF KERALA [2020 (4) TMI 74 - KERALA HIGH COURT], Form 8FA is mandatory and when the goods transported are not accompanied by the said declaration, it is only reasonable to conclude that there is an attempt to evade tax. Since the statute makes even an attempt to evade tax as penal, we are of the considered view that the imposition of penalty for failure to carry a declaration in Form 8FA is wholly justified in the circumstances of the case. Quantum of penalty - HELD THAT:- Though the technical omission of carrying Form 8FA declaration is penal, the circumstances of the case do not justify imposition of the quantum of penalty as was done by the Intelligence Officer. A minimal penalty alone ought to have been imposed in the instant case. Having regard to the circumstances of the case and the nature of the transaction involved in the case, an amount of ₹ 15,000/- alone ought to have been imposed as a penalty. The quantum of penalty is reduced - question of law framed is answered and the revision petition is allowed in part.
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