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2023 (2) TMI 475 - HC - VAT and Sales TaxInvocation of penal proceedings under Section 67(1) of the KVAT Act - goods in transit - goods transported with a view to evade tax? - Whether the Tribunal erred in directing the assessing authority to invoke the penal provisions under Section 67(1) of the KVAT Act when there is specific provision governing the matter of goods in transit under Section 47(6)? HELD THAT:- Section 46(3)(e) mandates that when goods are imported to the State the transporter shall keep a copy of the declaration bill duly acknowledged by concerned authority and shall be produced on verification by any authority and the declaration should be in Form 8FA. The case of Joy Alukkas [2022 (11) TMI 92 - KERALA HIGH COURT] is a case in which gold ornaments were transported from Haryana and from New Delhi through Air. When the goods were intercepted, it was found that there were defects in the delivery note and in respect of the full name and address of the consignee the invoice did not contain the full address of the consignee. The delivery notes tampered with over writings and thus the Assessing Officer had reason to believe that there was an attempt to evade tax and therefore, section 47(6) of the KVAT Act was invoked - Going through the facts of the case it can be seen that only defect is that declaration in form 8FA was not accompanied with the goods. All other documents including invoices, bill of entry and delivery note were in order and there were no defects. Hence, the decision has no application to the facts of this case. The Tribunal has found in its order that there is clear violation of the provisions on the part of the appellant/respondents which warrants imposition of penalty. But held that penalty under Section 47(6) of the KVAT Act is not warranted and liberty was given to invoke the penal provision under Section 67(1) of the KVAT Act for the offences proved against the assessee - On going through the order of the Tribunal in detail, it is opined that the Tribunal was justified in allowing the appeal and setting aside the penalty under Section 47(6) KVAT act and giving liberty to invoke Section 67(1) KVAT finding that the appellant had clearly violated the provisions of section 46(3)(e) of the KVAT. Therefore the question of law raised in this revision is answered against the petitioner and in favour of the assessee. Revision dismissed.
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