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2021 (4) TMI 602 - HC - VAT and Sales TaxRestoration of penalty - at the time of interception, the e-sugam was not tendered and was furnished subsequently - Section 64(1) of Karnataka Value Added Tax Act, 2003 - HELD THAT:- It is well settled in law that a penalty is attracted only if there is an attempt to evade the tax payable under the Act and not merely because the documents accompanying the goods are not in the prescribed format/form - On perusal of Section 53(12)(a) of the Act, it is evident that penalty can be levied only in case where sufficient cause is not shown. In the instant case, the First Appellate Authority namely, the Joint Commissioner of Commercial Taxes based on the material available on record, recorded a finding that goods belonging to a registered dealer of the State whose bonafides are not doubted were moving for the purpose of sale to a registered dealer in the State and the movement of goods was duly supported by invoices which disclose the particulars of the transaction which shows the movement of the goods. It is further been held that the movement of the goods has not been even doubted by the respondents and there is no material on record to indicate an attempt to evade the tax. Appeal allowed - decided in favor of appellant.
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