KHADEEJA MAKKAR Vs. STATE OF KERALA

JUDGEMENT

(1.) These revisions are filed challenging the orders passed by the Kerala Value Added Tax Appellate Tribunal in T.A.(VAT) Nos.201/2010 and 202/2010.

(2.) The issue relates to an order of penalty imposed by the Intelligent Officer. The place of business of the dealer was inspected by Intelligence Squad on 25.10.2007 and they have prepared stock inspection report incorporating stock analysis found at the business premises during inspection. Though the assessee was called upon to produce the books of accounts, the assessee did not produce any such books as according to the assessee, no books of account was available. The Intelligence Officer therefore proceeded to consider the turnover on the basis of her consumption of power. Accordingly, the total turnover suppressed was found out by computing the value of the aggregate taking into account the production on the basis of the power consumption for an hour. The stock analysis was also considered and the Intelligence Officer imposed a penalty of double the amount of tax sought to be evaded. Separate appeals were filed before the Dy.Commissioner (Appeals) and having regard to the factual situation involved in the matter, the Dy.Commissioner (Appeals) had reduced the amount of penalty to 150% of the tax due. On a further revision before the Tribunal, the Tribunal having agreed with the finding of fact of the assessing officer and the appellate tribunal in exercise of its discretion reduced the liability to pay tax at 100% of the tax sought to be evaded.

(3.) Heard the learned senior counsel appearing for the revision petitioner as well as the learned Government Pleader appearing on behalf of the Department.