STATE OF KARNATAKA Vs. MANGALORE STEEL AND CEMENTSRESENTED

JUDGEMENT

(1.) M/s Mangalore Steel and Cements are before us in STRP No. 53 of 2005. Following questions of law are raised in this petition.

(2.) THE facts of the case are as follows: Petitioner is a dealer dealing in Iron and Steel and cement. Assessment was completed for the assessment year 2001-2002 in terms of the order dated 31. 12. 2002. Turn over of Rs. 1,86,52,422. 70 was treated as a second sale of iron and steel.

(3.) EXEMPTION was granted from the payment of tax under the Karnataka Sales Tax Act, 1957 ('the act', for short ). Thereafter, notice under Section 12-A of the Act was issued proposing to re-assess the petitioner and to levy penalty under Section 6-A (3) of the Act on the ground of bogus declaration. Reply was submitted. Assessing Officer did not accept the explanation. He levied the penalty. Appeal was filed. Appellate Authority set aside the order of the penalty and directed to pass a fresh order. Aggrieved by the order of the first appellate authority, in so far as confirming the levy of tax as per the re-assessment, and remanding to the assessing authority, petitioner filed a second appeal. Tribunal has set aside the penalty of Rs. 18,76,689/-and modified at Rs. 6,26,563/ -. Aggrieved by the said order the assessee is before us in STRP No. 53 of 2005.