Sales Tax Appeal No. 2080 of 2012. Case: Lab Systems, Bangalore Vs State of Karnataka. Karnataka Appellate Tribunal

Case NumberSales Tax Appeal No. 2080 of 2012
CounselFor the Appellant: Sri A. Satyanarayan, Advocate for Appellant and For the Respondent: Sri B. Vasanth Kumar, State Representative for Respondent
JudgesBasavaraj S. Sappannavar, DJM and P. Puttaraju, CTM
IssueKarnataka Value Added Tax Act, 2003 - Sections 63, 53(12)
Citation2013 (77) KarLJ 304
Judgement DateAugust 26, 2013
CourtKarnataka Appellate Tribunal

Judgment:

P. Puttaraju, CTM

  1. This is an appeal filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (for short, the 'Act') contesting the appeal order dated 7th September, 2012 passed by the Joint Commissioner of Commercial Taxes (Appeals-I), Bangalore (for brevity, as 'FAA') in Case No. VAT.AP/1939/2010-2011, who has upheld the penalty order dated 23rd November, 2010 concluded under Section 53(12) of the Act by the Commercial Tax Officer (Enforcement-7), Rubli (for short as 'Inspecting Authority' or 'IA').

  2. The facts and grounds leading to this appeal in brief are stated thus:

    (i) The Transport Office of M/s. Blue Dart Express Limited, Rubli has been inspected by the IA on 11-11-2010 and has checked the goods belonging to the appellant.

    (ii) The following documents have been produced before the IA.-

    (a) Docket No. 50123067013/30.10.10 from Ambala to Rubli.

    (b) Invoice No. 636/30.10.10 for the inter-State purchase of microscope by the appellant.

    (c) Form VAT D-3 bearing No. B-2818243, dated 30-10-2010 outward challan of Haryana Value Added Tax Act, 2003.

    (iii) Being not satisfied by the documents produced, the IA has issued Goods Consignment Endorsement (GC Endorsement) seeking for the confirmation of the consignee. This GC Endorsement dated 11-11-2010 has been converted into penal notice under Section 53(12) of the Act proposing to levy penalty at three times the tax on the basis of value of goods. This notice has been served on the transport office on 15th November, 2010 allowed 10 days time to furnish reply. The appellant has submitted reply to the said notice on 19th November, 2010 itself and has sought 5 days time from the said day to arrange for the payment of penalty, even though in the reply the appellant has not accepted the findings of the IA which has lead to initiation of Section 53(12) proceedings. After the receipt of the same, the IA has passed orders under Section 53(12) of the Act levying penalty amounting to Rs. 2,58,826/- on 23-11-2010.

    (iv) The main ground for the levy of penalty is that even though the appellant. has pmchased the goods from M/s. N.K. Jain Instruments Private Limited, Ambala against 'c' Form, the said goods has been dispatched to M/s. Blue Dart Godown, Hubli as per the delivery point mentioned in the inter-State pmchase invoice and consignee is not known. The appellant in order to save the transportation charges from Bangalore to Hubli once again had the delivery point as Hubli. In...

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