CLEAN FOODS LTD. Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Appellant, in this proceeding is calling in question the order dated 08.12.2010 passed by the Additional Commissioner of Commercial taxes in SMR proceedings bearing No.ZAC- 1/BGM/SMR-07/10-11 imposing a penalty of Rs.2,27,865/-.

(2.) Briefly stated the facts of the case are that the appellant, a manufacturer and exporter of mango pulp sought to transport 68.8 metric tons of his product from Kolikopp Village, Post Tarihal, Dist. Belgaum to Mumbai. The vehicle was intercepted in the check post at Nipani and a tax of Rs.2,27,865/- was imposed. A proposition notice was served and after receiving appellant's response, the Commercial Tax Officer, Bangalore, vide order dated 12.09.2009 confirmed the proposed penalty of Rs.75,955/-. Appellant challenged the same before the Joint Commissioner of Commercial Taxes (Appeals), Belgaum Division, Belgaum, who vide order dated 11.10.2006 allowed the appeal and set aside the penalty order passed at the check-post. Subsequently, the Commercial Tax Department in the suo-motto proceedings vide order dated 08.12.2010 took up the matter for re-consideration and held that the order in appeal passed by the Joint Commissioner was not tenable in law and accordingly set aside the same and penalty order under Section 53 (12) of the Act was restored whereby the penalty of Rs.75,955/- came to be confirmed. In these circumstances, the appellant has preferred this appeal raising the following question of law:

(3.) While admitting this appeal, this Court has framed the following question of law: