VIJAYA ELECTRIC SUPPLY COMPANY Vs. INTELLIGENCE OFFICER

JUDGEMENT

(1.) PETITIONER has filed this writ petition challenging Ext.P7, an order of penalty passed against the petitioner under Section 47(6) of the KVAT Act (in short 'the Act').

(2.) EXT .P1 is a notice issued under Section 47(2) of the Act, detaining a consignment of electrical goods for the irregularities mentioned therein. Instead of furnishing security as demanded therein, petitioner filed Ext.P2 reply contending inter alia that they were not the owner of the goods. Consignor also did not furnish any security and on the other hand, they took the position that the goods were already sold to the petitioner. Finally goods were seized as per Ext.P5 order passed by the respondent. Thereafter, adjudication was completed and Ext.P7 order was passed imposing a penalty of Rs.600030.00 on the petitioner and they were directed to pay the penalty amount as per the notice of demand enclosed. It is on receipt of Ext.P7 and P8 Demand Notices, petitioner has filed this writ petition mainly contending that in terms of the provisions contained under Section 47(8) r/w Rule 67(7) of the KVAT Rules, 2005, respondent is bound to proceed against the goods rather than demanding payment as ordered in Ext.P7.

(3.) SECTION 47(6) of the Act authorizes the competent authority of the Department to impose on the owner of the goods penalty not exceeding twice the amount of tax attempted to be evaded as may be estimated by such Officer.