JAS AGENCIES Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) Order passed by the Commissioner of Commercial Taxes, Thiruvananthapuram invoking Section 37 of the Kerala General Sales Tax Act, 1963 revising an order passed by the Deputy Commissioner reducing the amount of penalty to Rs. 5,000/- is under challenge in this appeal.

(2.) Intelligence Officer in exercise of the powers under Section 45A of the Act imposed penalty of Rs. 6 lakhs on M/s. Jas Agencies, Sultan Bathery for the year 1995-96 stating that the assessee had deliberately acted in contravention of the provisions of the Kerala General Sales Tax Act and that he had failed to produce true and complete accounts and hence maximum penalty was imposed. Deputy Commissioner entertained the revision filed by the assessee against the imposition of penalty and reduced the same to Rs. 5,000/-. Commissioner in exercise of the powers under Section 37 of the Act reversed that order and restored the order of the Intelligence Officer.

(3.) M/s. Jas Agencies, is an assessee borne on the files of the Agricultural Income Tax and Sales Tax Officer, Sulthan Bathery. During the course of investigation conducted by the Intelligence Officer, Kalpetta certain extracts of sales of cement effected by the assessee were collected from the Executive Engineer, Karapuzha Project and on verification of the books of accounts of the assessee along with the extracts it was revealed that 83 sales bills serially numbered from 1 to 83 dated 25-08-1995 to 25-03-1996 were not accounted in the books of accounts of the assessee. Intelligence Officer therefore imposed penalty of Rs. 6 lakhs. Assessee failed to account the sale of 16280 bags of cement valued at Rs. 27,90,260/-. Assessee contended that he is only a second seller in cement and therefore there is no tax liability and there is no question of evasion of tax impose penalty under Section 45A of the Act.