SAUD SANITARY & TILES Vs. STATE OF KERALA

JUDGEMENT

(1.) THIS revision is preferred by the assessee against the order of the K.V.A.T Additional Appellate Tribunal, Palakkad dated 03.12.2014 in T.A.(VAT) No. 1095 of 2013. The brief facts leading to the case are as follows:

(2.) THE revision petitioner herein, a partnership firm, is a registered dealer under the KVAT Act engaged in the sale and purchase of ceramic tiles and sanitary items. The Intelligence Officer, Squad No. I, Commercial Taxes, Palakkad, conducted an inspection at the place of business of the revision petitioner on 11.02.2010. As per the Registration Certificate provided to the petitioner, the place of business is "Saud Sanitary & Tiles, KP -V/4605, Chungam, Kumaramputhur". At the time of inspection, as per the Registration Certificate, the assessee had no other business place or godown or Branch. But, it was noticed by the Inspecting Squad that the assessee had stocked tiles in Door No. V/471, consisting of 11 (eleven) shutters with locking facility in a separate building near to the business place of the assessee. On subsequent verification with reference to the documents, the Intelligence Officer found out that the petitioner had stored tiles valued at Rs. 33,62,381/ - in the undeclared godown and thereupon the assessing authority issued notice on 12.03.2010 under Sec. 44(8) and (10) of the K.V.A.T Act, 2003 and proposed a penalty of Rs. 16,81,190/ - being 50% of the value of the goods found at the time of inspection.

(3.) HOWEVER , the assessing officer, after evaluating the facts and circumstances and the objections raised by the assessee to the proposal notice and other documents on record, found that the assessee is liable to be penalised under Sec. 44(8) and (10) of the K.V.A.T Act and therefore, imposed the penalty to the tune of Rs. 16,81,190/ -.