(1.) THE assessee is a public limited company in Ahmedabad and its Branch Office at Bangalore dealing in sale of lifts and lift parts. On 1 -9 -2008 the lift materials were dispatched in a lorry by the head office of the assessee. On 6 -9 -2008, when the goods were in the process of unloading one consignment at Chamarajpet, a mobile check -post squad inspected the same. They found that the goods were not accompanied by the sale invoice and delivery note. A memo was issued to the assessee on 6 -9 -2008 levying a penalty of Rs. 3,82,868/ -. The AO passed an order on 16 -9 -2008 holding that the transaction of local sale from Branch Office at Basavanagudi to the customer at Chamarajpet amounts to resulting in violation of Section 53 of the Karnataka Value Added Tax Act, 2003 (for short, 'Act') and imposed penalty on the entire consignments found in the lorry. The fact reveals that the assessee had given an explanation on 16 -9 -2008 at 4.30 p.m. The order was passed by the AO at 4.00 p.m. The assessee aggrieved by the order filed an appeal before the Joint Commissioner of Commercial Taxes (Appeals -I), Bangalore. The Joint Commissioner held that there is no violation to levy penalty under the Act. It is also found that the assessee had filed the returns subsequently and paid the tax and allowed the appeal on the ground that the AO has passed the order without giving opportunity thus set aside the order of AO.
(2.) THE Revenue being aggrieved by the said order filed a revision before the Additional Commissioner of Commercial Taxes, Zone -1, Bangalore. The Additional Commissioner in Revision found that the order of the Appellate Authority is illegal and adverse to the interest of the Revenue for the reason that the materials disclose that the goods were not accompanied by the sale invoice and delivery note at the time of check. It is also found that the documents were not checked and sealed at exit check -post and the seal is not visible on the documents. The documents do not disclose that it is an inter -State sale and found that the transaction is a local sale effected to branch at Bangalore. Thus the Additional Commissioner in Revision confirmed the order of penalty and set aside the order of Appellate Authority. The assessee being aggrieved by the said order has filed this appeal.
(3.) THE Counsel for the department, per contra, submitted that the requirement of Section 53 of the Act insists that any goods transported should be accompanied by sale invoice and delivery note indicating the particulars of the consignee. In the instant case, the sale is effected by the branch office to the customer at Bangalore and it is a local sale. Therefore, the Act applies to the transaction and the order passed by the AO is in accordance with law.