TMI Blog2016 (8) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... ing authority have also referred to inconsistencies in the pleas taken by the assessee in respect of the bills and gate passes under which the raw material is said to have entered into the State. The assessing authority as well as the Tribunal have permitted the introduction of considerations that were wholly irrelevant to the exercise of power under section 13A. The goods were shown to belong to a bona fide dealer. They were shown to have been duly entered in the books of accounts. How the raw material from which the goods were manufactured entered into the State was a wholly irrelevant consideration and clearly tainted the statutory enquiry beyond repair. Having embarked upon this exercise, in the opinion of this Court, both the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts were being returned under the gate passes in question. The details of the dealer and the description of goods being returned were also declared. The assessing authority however did not accept the explanation furnished by the assessee and accordingly proceeded to impose penalty in terms of sub section (4) Section 13-A. Aggrieved thereby, the assessee took the matter before the first appellate authority, which held that both the revisionist and entities to whom the goods were dispatched were bona fide registered dealers. It further recorded a categorical finding that the goods which were being dispatched had been duly accounted for in the books of accounts. The first appellate authority therefore took the view that no cause existed for im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch goods have not been properly accounted for. Insofar as imposition of penalty is concerned, the same is an order which comes to be passed after the dealer has been put to notice, an explanation obtained from him and upon the authority being satisfied that the goods were omitted from being shown in the accounts, registers and other documents maintained by the dealer. The width, expanse and content of sub sections (1-A) and (4) of Section 13-A operate therefore in different spheres. While the power under sub section (1-A) is exercised pro tem and at a time when the officer harbors a doubt about the goods being traceable to a bona fide dealer or not being duly accounted for, imposition of penalty under sub section (4) comes to be imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts. How the raw material from which the goods were manufactured entered into the State was a wholly irrelevant consideration and clearly tainted the statutory enquiry beyond repair. Having embarked upon this exercise, in the opinion of this Court, both the assessing authority as well as the Tribunal completely misdirected the enquiry, which was liable to be undertaken under sub-section (4). It is on account of this approach that no findings have been entered by the Tribunal as to whether the goods had been duly accounted for by the assessee. The Tribunal, this Court notes, does not refer to any evidence nor records any reason to dispel what the first appellate authority recorded in his order namely that the goods had been duly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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