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2022 (1) TMI 445 - HC - VAT and Sales TaxLevy of penalty under Section 53(12) of Karnataka Value Added Tax Act, 2003 for breach of Section 53(2) of the Act - transporter has carried the scrap of Copper, Aluminium and Brass in vehicle bearing No. HR-61-A-4041 which was alleged to be robbed and the police had found the same in vehicle Nos.KA-05-AC-7002 and KA-13-8671 before a godown at Madanayakanahalli, Bengaluru, intercepted the vehicle - HELD THAT:- The appellate authority came to a conclusion that the original documents tendered at the HRCP (in), Attibele, which is the border entry check post of Karnataka were not traceable on account of theft and since the enforcement authority had only an access to verify the duplicate set of documents, could not have arrived at a conclusion that the consignor M/s Bhagawathi Enterprises is from Salem, Tamil Nadu, and the Cosignee being at New Delhi, in transit, no penalty could have been levied by the check post officer. The revisional authority having found the same being erroneous and prejudicial to the interest of the Revenue, has rightly initiated the suo moto revisional proceedings, more particularly, when the check post officer and ACCT (Enforcement) had conducted thorough investigation into the genuineness of the consignment, the goods and had come to a conclusion that the goods have been loaded in Karnataka by M/s Bhagawathi Enterprises, the movement of goods not being established with the relevant documents, in the background of non existing address of the consignee – M/s Metal Traders, Delhi, has held that the order of the first appellate authority was unjustifiable. The check post officer has categorically given a finding that the documents have not been tendered for examination at the inward check post of the Karnataka State and no seal of the check post in the State was found in invoices in addition to the transit pass required for inter-State transit. The said discrepancies would certainly come within the ambit of Section 53(2) of the Act and thus, imposition of penalty under Section 53(12) for violation of the provisions of Section 53(2) of the Act cannot be found fault with. The proceedings initiated by the Additional Commissioner of Commercial taxes to set aside the order of the first appellate authority cannot be held to be unjustifiable - Appeal dismissed.
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