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2023 (11) TMI 1124 - HC - VAT and Sales TaxReturn of the balance amount kept by the Revision Petitioner on behalf of the customers - sale proceeds for levy of tax for imposing penalty under section 67 of the KVAT Act or not - sufficient material exists for imposing penalty or not - penalty confirmed based on presumptions and surmises or not - non-speaking and cryptic order - failure to grant opportunity to the petitioner for adducing further evidence or not - HELD THAT:- On the facts of the instant case, when it is found that the petitioner dealer had clearly contravened the terms of the Central Government Scheme that proposed benefits to purchasers of coir looms subject to their complying with a particular procedure for securing the said benefits, the contention of the petitioner cannot be accepted that, who was a person entrusted with the task of supplying the looms that the supply of parts of the loom (in lieu of a complete loom) for a lesser consideration should be considered as legal and proper and that his tax liability would therefore be only in respect of the reduced consideration received for the parts of the loom actually sold to the customer. The legal presumption to be drawn in the instant case, in the backdrop of the Central Government Scheme, is that the amounts received by the petitioner from the bank represented the actual consideration for the supply of the coir looms, which the petitioner was obliged to sell to the beneficiaries of the Scheme. The obvious illegality also cannot be accepted that would arise if, as contended by the petitioner, it is a fact that he had colluded with the customer and supplied only parts of a loom, instead of an actual loom, and refunded a part of the amounts received from the bank to the customer. In the absence of any evidence to suggest that the loom itself was not sold, it is opined that the impugned order of the Commissioner does not require to be interfered with. This O.T. Revision is disposed off by answering the questions of law raised in favour of the revenue and against the petitioner assessee.
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