9911796707
TMI Blog2010 (9) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... or short, "M/s. Vivek Petro") and the same is perused. The questions of law raised are as under: "(i) Whether, on the facts and circumstances of the case, the proceedings initiated against the appellant under section 18B of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 are void ab initio in view of the fact that the goods had become part of local stock of the consignor, who is also a registered dealer under the said Act, before they were transported outside the State? (ii) Whether, on the facts and circumstances of the case, the respondent has committed an error in ignoring the submission of the appellant that the provisions of section 18B of the Karnataka Tax on Entry of Goods Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the present case are that the appellant is a transporter engaged in the business of transportation of goods; in the month of June, 2002, the consignment belonging to a company by name M/s. Vivek Petro-a registered dealer under the Karnataka Tax on Entry of Goods Act, 1979 transported consignment of a product called "naptha" from Mangalore; the contention of the Department was that the transit pass which was required to be taken by the driver or the person incharge of the vehicle at the check-post of entry after commencement of the transit was not handed over at exit check-post; therefore, a presumption under sub-section (4) of section 18B is available to hold that the consignment did not move out of the State but was sold within the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was able to establish that there was ample evidence to prove the movement of goods outside the State and not sold within the State. He also refers to the release of goods of naptha in favour of the consignor and also letters issued by the Deputy Commercial Tax Officer of Pondicherry. The assessing authority had come to conclusion that all the entries effected by the consignor did move out of the State. Based on this finding, the appellate authority allowed the appeal in favour of the appellant, setting aside the orders of the check-post officer dated November 30, 2003. The revisional authority took up the matter by way of suo motu revision and issued a show-cause notice to the assessee calling upon him to explain the contents of the not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tipulated time a copy of transit pass obtained under subsection (1) to the officer-in-charge at last check-post or barrier before his exit from the State. (3) If for any reason, the goods carried in a goods vehicle are, after entry into the State (or after commencement of movement, as the case may be) not moved out of the State within the time stipulated in the transit pass, the owner of the goods vehicle shall furnish to the officer empowered in this behalf the reasons for such delay and other particulars if any thereof and such officer shall after due enquiry extend the time of exit by suitably amending the transit pass: Provided that where the goods carried by a vehicle are, after their entry into the State, (or after commencement of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was no evasion of payment of tax. If the intention of the Legislature were to be that irrespective of payment of tax on the goods in question, rebuttable presumption was available to the assessee, then whether those goods were subjected to payment of tax or not would be irrelevant. In view of the fact that rebuttable evidence was allowed to be brought on record by the party in question, it would be open for him to establish that in fact TP was handed over at exit check-post or that the goods in question did move out of the State. Therefore, presumption of sale within the State would not be available to the Revenue. In the present case, the contention of the appellant consistently was to the effect that along with the driver of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department was also paid as per the findings of the assessing authority. When once the assessing authority who took up the assessment proceedings as a part of the investigation into the missing of/or non-accounting of TPs. at exit check-post, so far as M/s. Vivek Petro is concerned, it was satisfied that all the goods that were imported which were meant to be sent to Pondicherry did reach Pondicherry and not even a single incident the Revenue was able to establish that it was sold within the State. He was justified in saying that the assessee, i.e., M/s. Vivek Petro had accounted all the goods that were imported by them and nothing escaped from the tax. In that view of the matter, when once by way of rebuttable evidence, the appellant reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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