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2020 (4) TMI 74 - HC - VAT and Sales TaxImposition of penalty u/s 47(6) of the Kerala Value Added Tax Act - only reason for imposing penalty by the Enquiring Authority is for not providing Form 8FA during transit - intent to evade tax or not - HELD THAT:- The Enquiry Authority had come to a clear finding that the goods happened to be intercepted during transit. If the goods had reached the go-down and books of account were not prepared in accordance with the bill of entry or transaction was not disclosed, there was no possibility of the department coming to know about the transaction unless the import documents are verified from the customs authority. Therefore as far as the declaration in Form 8FA is concerned, it is mandatory and if any transportation is not accompanied by the said Form, it is reasonable to conclude that there is an attempt to evade tax. It is not actual evasion of tax as contemplated in the books, but it is an attempt. Probably it might be an omission. But as far as the Department is concerned, the reasonable view that the Department could take is that there is an attempt to evade tax. The Tribunal was justified in arriving at a conclusion that the appellate authority had committed error in setting aside the order of penalty. However, it is seen that double the amount of tax was imposed as penalty - The quantum of penalty is reduced. Appeal allowed in part.
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