BAGADIA BROTHERS Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) This appeal has been admitted on 29.06.2018. However, we noticed that question of law has not been formulated and as such, we have formulated the following Substantial Question of Law for determination:

(2.) Whether the Revisional Authority was justified in initiating the proceedings under Section 64(1) of KVAT Act and setting aside the Appellate Authority order dated 24.07.2017 Annexure - C passed under Section 62(6) of KVAT Act?

(3.) The above said order of 1st Appellate Authority was sought to be revised by Additional Commissioner of Commercial Taxes under Section 64(1) of KVAT Act. Hence, notice under Section 64(1) of KVAT Act came to be issued to appellant herein on 08.12.2017 whereunder it was proposed to set aside the order dated 24.07.2017 passed by 1st Appellate Authority and to restore the order dated 28.02.2014. In response to said notice, written objections was filed on 22.01.2018 by appellant/assessee; and by order dated 09.02.2018 Annexure - A, the Revisional Authority set aside the 1st Appellate Authority order dated 24.07.2017 and restored the re-assessment order passed on 28.02.2014 for the reason that seller of the appellant, namely, M/s.Tradex Metal Corporation was inspected by the authorities and it was found that said dealer was not doing business in the address given in the registration application. It was also opined by the Revisional Authority that M/s.Tradex Metal Corporation was only a bill trader who had issued fake bills to facilitate others dealers like the appellant to claim input tax credit. In fact, department has registered a complaint before the jurisdictional police, Kalasipalayam Police Station which has been registered in FIR No.0041 on 20.02.2012. During the course of investigation, it was noticed that out of 53 bogus cases, the said dealer i.e., M/s. Tradex Metal Corporation was also one such business enterprises which had indulged in bill trading by issuing and receiving fake bills to facilitate other dealers to claim input tax credit and output tax credit has not been paid. On these grounds, Revisional Authority as already noticed hereinabove, set aside the order of 1st Appellate Authority and restored the re-assessment order dated 28.02.2014 passed under Section 39(1) of KVAT Act.