NAIR COAL SERVICES LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) These revisions are filed by the assessee challenging the common order passed by the Kerala Value Added Tax Additional Appellate Tribunal, Palakkad in TA (VAT) Nos. 1099, 1505, 1100 and 1506 of 2013. By the impugned common order, the Tribunal allowed the appeals filed by the Revenue and dismissed the appeals filed by the assessee and thus restored the order of penalty passed by the Intelligence Officer in exercise of his powers under Section 67 of the KVAT Act.

(2.) The assessee is a dealer engaged in the supply of coal to Messrs. Malabar Cements Ltd., a Government of Kerala undertaking. In conclusion of the proceedings under Section 67 of the KVAT Act, by order dated 31.01.2009, penalty of Rs. 24,80,494 and Rs. 1,25,57,370 was levied on the assessee for the assessment years 2006-2007 and 2007-2008 respectively. The orders were confirmed by the first appellate authority and further appeals were filed before the Tribunal. Since the penalty proceedings were initiated on the basis of the nil returns filed by the assessee, taking note of the revised returns that were subsequently filed by the assessee, the Tribunal passed order dated 11.11.2010 setting aside the impugned orders and remitting the matters to the Intelligence Officer with the following directions:

(3.) Accordingly, summons were issued to the assessee and after hearing its authorised representative and perusing the documents that are produced by the assessee, the Intelligence Officer passed Annexure A orders levying penalty of Rs. 16,23,620 for the assessment year 2006-2007 and Rs. 1,25,99,702/- for the year 2007-2008, both being double the amount of tax evaded. The assessee filed appeals against the penalty orders before the first appellate authority. The appeals were heard together and were disposed of by Annexure B orders. As per this order, penalty for the assessment years 2006- 2007 and 2007-2008 was reduced to Rs. 4,59,446 and Rs. 66,60,222 respectively.