TMI Blog2009 (9) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of tax on purchase and sale of old vehicle by not disclosing the sales turnover in the return filed and therefore, the penalty was rightly levied under section 67(1) of the KVAT Act. The petitioner is directed to produce certificate from the assessing officer about payment of tax and interest on the sale of old vehicles as above for the above two years and if such certificate is produced, the Intelligence Officer will after rechecking the correctness of the same, reduce the penalty to 25 per cent of the tax liability and excess penalty, if any, paid should be refunded to the petitioner. However, if the petitioner does not produce proof of payment of tax and interest as above, then the penalty fixed by the Tribunal at equal amount of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner nor the broker conceded any purchase and sale of old vehicles. During the relevant years, tax on sale of old vehicle under section 6(1) of the KVAT Act was four per cent, which was later reduced to 0.5 per cent of the sale value by introducing 10th proviso to section 6(1) of the KVAT Act. In view of the non-payment of tax on the sale of old vehicles purchased under exchange mela, the Intelligence Officer proposed to levy penalty for evasion of tax under section 67(1) of the KVAT Act. Even though the petitioner contended that he has not purchased and sold the old vehicles, the Intelligence Officer overruled the objections and levied penalty. The first appeals having failed, the petitioner approached the Tribunal with second a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate and transfer documents in terms of the Motor Vehicles Rules. The consideration paid to him is by way of adjustment of the purchase value of the old vehicle, towards the sale price of the new vehicle. It is the conceded position that the petitioner treats the sale of the new vehicle under the exchange scheme as full and complete with no debit balance of price in the customer's account. Therefore, purchase of old vehicle from the customer is complete when new vehicle is sold to him by recovering its value reduced by the cost of the old vehicle taken over from the customer. The next question to be considered is as to whether the petitioner purchased old vehicle or whether it is the broker who has purchased the old vehicle. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of old vehicle, then the broker only acts as an agent of the petitioner. In other words, the purchase and sale of the old vehicle is either by or on behalf of the petitioner. In our view, the Intelligence Officer, rightly found that the petitioner evaded payment of tax on purchase and sale of old vehicle by not disclosing the sales turnover in the return filed and therefore, the penalty was rightly levied under section 67(1) of the KVAT Act. The next question to be considered is with regard to the reduction of penalty claimed by the petitioner. We find that the Tribunal has reduced the penalty to equal amount of tax as against the double amount sustained by the first appellate authority. However, we feel, the petitioner can be grant ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
