STATE OF KERALA Vs. C HANEEFA

JUDGEMENT

(1.) The Revenue is before this Court in various revisions, one arising under the Kerala General Sales Tax Act, 1963 (S.T.Rev.No.42/2015) and the others arising under the Kerala Value Added Tax Act, 2003.

(2.) The respondent had been carrying on the business of a saw mill without any registration, under the KGST Act or the KVAT Act. A shop inspection was conducted and on verification of accounts, it was revealed that the respondent had supplied timber and planks for the period from 2004-05 to 2007-08 and issued sale bills on letter pad to Nirmithikendra. The timber supplied was for a value of Rs.10, 25, 864/- for the assessment year 2004-05. The tax effect for that assessment year was Rs.1, 41, 569/-, which was not paid. The sales of timber and planks effected for the assessment years 2005-06, 2006-07 and 2007-08 are for Rs.12, 79, 353/-, Rs.14, 07, 678/- and Rs.6, 80, 196/- respectively. Total tax effect of the aforesaid transactions were Rs.3, 05, 512/-, Rs.3, 54, 925/- and Rs.1, 58, 473/- respectively.

(3.) The value of timber sold for each of the years exceeded the threshold limit for registration and there was no tax payment made for the transactions. Proceedings were initiated by the Intelligence Officer under the KGST Act for the year 2004-05 and under the KVAT Act for the balance years. Penalty was imposed at twice the tax liability computed for all the years. Since first appeals were rejected, the respondent was before the Kerala Agricultural Income Tax and Sales Tax Appellate Tribunal/Kerala Value Added Tax Additional Appellate Tribunal (Tribunal) .