TMI Blog2021 (3) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... e consequences of non-compliance are prescribed under Section 53(12)(a) of the Act. The Commercial Tax Officer has power to levy penalty double or triple the amount of tax leviable in respect of the goods under transport, in case sufficient cause is not shown. Thus, the Commercial Tax Officer has discretion in the matter of imposition of penalty and the question of imposition of penalty is not automatic. In the instant case, the appellant, in reply to the notice issued to him proposing to levy penalty, has stated that one of his relatives in Kannur, Kerala had expired and therefore he had to rush to Kerala and was unable to raise a tax invoice or generate e-sugam before commencement of movement of goods. The appellant undertook to produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer exercising discretionary powers vested in him under Section 53 (12) of the KVAT Act, 1957 by three times? 2. Whether on the facts and circumstances of the case, the order passed by the First Appellate Authority is erroneous and prejudicial to the interest of revenue thus justifying the revision jurisdiction invoked by the Respondent? 3. Whether on the facts and circumstances of the case, the order passed by the Commercial Tax Officer imposing minimum penalty exercising discretionary powers vested in him as per Section 53(12) of the KVAT Act is erroneous and prejudicial to the interest of revenue thus justifying the revision jurisdiction invoked by the Respondent? 2. Facts leading to filing of this appeal, briefly sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. The Revisional Authority by an order dated 04.05.2015, inter alia held that the appellant had clearly contravened the provisions of Section 53(2)(b) of the Act for which levy of maximum penalty under Section 53(12)(a)(ii) of the Act was leviable and therefore levy of penalty was enhanced to three times of the tax i.e., ₹ 7,74,900/-. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the appellant submitted that levy of penalty under Section 53(12)(a)(ii) of the Act is not automatic and the Commercial Tax Officer has the discretion to levy penalty up to three times the amount of tax, provided sufficient cause is not furnished. The Revisional Authority failed to appreciate that in the instant c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less than the amount of tax leviable but shall not exceed one and half of the amount of tax leviable in respect of the goods under transport in contravention of [clause (c) or] clause (d) of sub-section (2), if a dealer registered under the Act accepts that he is the consignor or consignee of the goods; (ii) in cases other than those falling under item (i), shall not be less than double the amount of tax leviable but not exceed three times the amount of tax leviable in respect of the goods under transport. 8. On perusal of the aforesaid provisions, it is evident that Section 53(2)(b) of the Act casts an obligation on the owner or person in charge of the goods vehicle to carry with him such documents as may be prescribed in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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