KARMA ENTERPRISES Vs. STATE OF KERALA

JUDGEMENT

(1.) The revision petitioner is the appellant in T.A. (VAT) 75/2015 on the files of the Kerala Value Added Tax Appellate Tribunal, Additional Bench, Kozhikode, who is challenging the order of the Tribunal dated 18-09-2018 dismissing the appeal.

(2.) The Intelligence Inspector, Squad No.2, Commercial Taxes, Kozhikode had intercepted a consignment despatched by the revision petitioner, while inspecting the premises of 'KRS Parcel Service' Kozhikode, on 30-12-2013. The interception was based on an allegation that it was transported without proper documents as required under Section 46 (3) of the Kerala Value Added Tax Act, 2003 ('KVAT Act', for short) read with Rule 67 (7) of the KVAT Rules. In the notice issued demanding payment of Security Deposit, the reasons mentioned for the detention are as follows;

(3.) Aggrieved by the order imposing penalty, the revision petitioner took up the matter before the Assistant Commissioner (Appeals), Commercial Taxes, Kozhikode. While considering the contentions of the appellant, that the transaction involved no sale and the goods were moving outside the state as 'purchase return', it was noticed by the appellate authority that the seller had issued 'Credit Note' against the purchase return effected by the revision petitioner. Contention raised was that, there arose no question of evasion in payment of any tax due. But the first appellate authority found that the revision petitioner had not fulfilled the mandatory requirement under Rule 58 (16) of the KVAT Rules in making the 'Delivery Note' using double sided carbon paper. Further it was observed that, the Enquiry Officer had found that the two invoices produced were not seen declared in any of the border check posts, in order to prove that the goods were originally received from the dealer in Chennai. Therefore the appellate authority observed that, he finds no reason to interfere with the order imposing penalty.