TMI Blog2021 (8) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under section 47(6) of the Act. As held by the Division Bench of this Court in POLYMER DESIGNS AND MOULDINGS VERSUS STATE OF KERALA [2020 (4) TMI 74 - KERALA HIGH COURT], Form 8FA is mandatory and when the goods transported are not accompanied by the said declaration, it is only reasonable to conclude that there is an attempt to evade tax. Since the statute makes even an attempt to evade tax as penal, we are of the considered view that the imposition of penalty for failure to carry a declaration in Form 8FA is wholly justified in the circumstances of the case. Quantum of penalty - HELD THAT:- Though the technical omission of carrying Form 8FA declaration is penal, the circumstances of the case do not justify imposition of the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of import and hence entrusted the matter with clearing agents. While the imported goods were being transported, the Intelligence Inspector intercepted it at Athani. Though the bill of entry and complete addresses, including details of the importer were all available, it was noticed that the goods were not accompanied by the declaration in Form 8FA. Suspecting attempt to evade tax, an amount of Rs,1,22,985/- was demanded as security. Thereafter, by proceedings dated 20.8.2014, the intelligence officer imposed a penalty of ₹ 1,22,985/- under section 47(6) of the Act. 3. The appeal filed by the assessee was allowed on the finding that there was no reason to infer attempt to evade tax since the only default on the part of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Limited v. State of Orissa [(1969) 2 SCC 627]: [(1970) 25 STC 211] to contend that a mere default in carrying a statutory obligation ought not automatically invite a penalty in the the absence of mens rea. 7. Adv.V.K.Shamsudheen, learned Senior Government Pleader on the other hand after referring to various decisions of this Court submitted that, failure to produce Form 8FA declaration renders the assessee liable for penalty on the ground of attempt to evade tax. He relied upon the decision in O.T.Rev. No.71 of 2015 and canvassed that Form 8FA was mandatory and also that if the goods were not accompanied by the said Form, it could reasonably be concluded that there is an attempt to evade tax. 8. Admittedly, the goods in transit wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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