TMI Blog1990 (6) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle was checked on October 21, 1983, by the Sales Tax Officer. It was found that the goods transported were not covered by a proper or genuine document. Besides the goods belonging to the assessee, goods belonging to another firm M/s. Shaik Rowther Company were also seen transported in the said van. The permit produced by the salesman was issued to the assessee-firm for the year 1981-82. The Sales Tax Officer suspected that there is an attempt to evade payment of tax. As directed by the Sales Tax Officer, the driver of the vehicle parked the vehicle in front of the Sales Tax Office, Alathur. The officer ordered detention of the goods. He issued a notice under section 29A(2) of the Kerala General Sales Tax Act read with rule 35A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p in writ appeal. 2.. We heard counsel for the appellant, Mr. K.C. Balagangadharan, as also counsel for the respondent-Revenue, Mr. N.N.D. Pillai. Counsel for the appellant put forward two points: (1) The appellant was issued a permit under section 15 of the Act. In violation of section 15 of the Act read with rule 7 of the Kerala General Sales Tax Rules, proceedings under section 29A cannot be initiated. In other words, the provisions of sections 15 and 29A of the Act are mutually exclusive. Even if the proceedings initiated by the assessing authority is legal, the penalty imposed-4 times the tax evaded-is not permissible. It is against section 29A(4) read with section 45A of the Act. Counsel for the Revenue sought to sustain exhibits P8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of each day." Kerala General Sales Tax Rules: "7. Issue of permit.-(1) Every registered dealer who transacts business at places other than his registered place of business or employs a travelling salesman or representative to transact business as aforesaid shall apply for a permit authorising himself or as the case may be, the travelling salesman or representative so to do. Explanation.-A separate application shall be necessary for the registered dealer himself and for each of his travelling salesmen or representatives. (2) Every application for a permit shall be submitted so as to reach the registering authority not later than the first day of May of the year for which permit is applied for or within thirty days from the date on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the balance on hand at the end of each day. The book in which the accounts are maintained and the stock book shall, before making any entries therein, be duly authenticated by the assessing authority by affixing its seal therein. The accounts and the stock book shall be maintained continuously for the whole period covered by the permit." Kerala General Sales Tax Act: "Section 29A. Procedure for inspection of goods in transit through notified areas.-(1) The driver or other person in charge of a vehicle or vessel shall stop the vehicle or vessel at any place within a notified area when so required by the officer-in-charge of that notified area, or at any other place when so required by any officer empowered by the Government in that beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to evade the tax due under this Act, he shall, by order, impose on the owner of the goods a penalty not exceeding twice the amount of tax attempted to be evaded, as may be estimated by such officer." "Section 45A. Imposition of penalty by officers and authorities.-(1) If the assessing authority or the Appellate Assistant Commissioner is satisfied that any person,- (a) being a person required to register himself as a dealer under this Act, did not get himself registered; or (b) has failed to keep true and complete accounts; or (c) has failed to submit any return as required by the provisions of this Act or the rules made thereunder; or (d) has submitted an untrue or incorrect return; or (e) has failed to comply with all or any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act are not in any way diluted or taken away by the issue of a permit under section 15 of the Act. We repel the argument advanced by the appellant's counsel in this behalf. 5.. The second and more important question canvassed before us is the legality or exigibility of the quantum of penalty levied in this case in the sum of Rs. 11,054. The penalty is levied under section 45A(1)(e) and (g) of the Act. It should be remembered that the Sales Tax Officer ordered detention of the goods and issued a notice under section 29A(2) of the Act and rule 35A of the Rules demanding a security deposit of Rs. 5,527.14 for allowing transport of the goods. Notice was served on the salesman Mr. Ismail. This was not complied with. The vehicle was driven awa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
