INDIAN STEEL Vs. STATE OF KERALA

JUDGEMENT

(1.) The above revision petition is filed by a registered dealer in steel, being aggrieved by the order dated 31.01.2019 of the Kerala Value Added Tax Appellate Tribunal, Kozhikode in TA(VAT)No.344/2017. The main point urged by the petitioner is that, while confirming the order of penalty under Section 47(6) of the KVACT Act, the Tribunal has decided the issue solely on the ground of suspicion of attempt to evade tax, while the law requires a definite finding that there was an attempt to evade tax.

(2.) The petitioner purchased MS Ingots weighing 20.480 metric tonnes on 07.02.2011 from MPS Steel Castings Private Limited as per Annexure A invoice. The same has been issued on 14.27 Hours and the material had been removed at 14.37 Hours.

(3.) The goods were intercepted by the Intelligence Inspector at NIDA, Kanjikode and notice in Form NO.17A (Annexure E) was issued to the petitioner on suspicion that there was an attempt to evade payment of tax. The reasons stated in Annexure E is that, on verification of the accompanying documents, it is revealed that the goods are consigned from Ramanattukara at 14.55 Hours and it was impossible for the goods vehicle having 20.48 metric tonnes of MS Ingots to ply 160 KMs in half an hour time. It appears that, initially the goods were removed on furnishing a Bank Guarantee, dated 08.12.2011.