K. MOOSA Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner was a dealer engaged in the business of trading in electronic goods and allied articles. For the assessment year 2011-12, the petitioner had filed monthly returns only for the months of April and May, declaring a taxable turnover of Rs.1,47,945.00. A shop inspection conducted by the Intelligence Officer, Squad No.II, Tirur, on 18/11/2011, revealed that another person named Basheer was running a business in aluminium fabrication work in the business premises of the petitioner. It was found that there was no physical stock of goods. As per Annexure-C proceedings, the Intelligence Officer found that there ought to have been stock worth Rs.47,62,925.00. He assessed the value of unaccounted sales to be Rs.48,82,048.00 and found that an amount of Rs.4,46,673.00 would be the tax due on the estimated unaccounted sale. On the basis of the above findings, he issued orders in exercise of the powers conferred under Sec. 74(1)(a) of the KVAT Act and compounded the offence on payment of compounding fee of Rs.4,55,000.00. The Intelligence Officer confirmed the payment and directed the petitioner to remit the tax dues with interest through e-payment.

(2.) Even though Annexure-C order was issued on 29/11/2012, the petitioner approached the Assessing Officer only on 4/6/2014 by filing Form 21H seeking to pay the tax, cess and interest amounting to Rs.5,62,810.00 in instalments. By Annexure-D order dtd. 5/6/2014, the petitioner was permitted to pay the above said amount in five equal instalments. Thereafter, the Assessing Officer issued notice to the petitioner proposing to assess the petitioner under Sec. 25(1) of the KVAT Act, 2003 by adding an amount equal to the suppression noted by the Intelligence Wing. The above proceedings culminated in Annexure-E order dtd. 30/9/2014, by which the petitioner was assessed for an amount of Rs.8,84,502.00 and corresponding cess. An appeal filed against Annexure-E order was dismissed by the Assistant Commissioner (Appeals) by Annexure-F order. Annexure-F order was confirmed in appeal by the Appellate Tribunal, Palakkad as per Annexure-G order dtd. 24/8/2015. The petitioner has approached this Court challenging Annexures E, F and G orders.

(3.) The petitioner has raised the following questions of law in the revision petition.