HIMANI CERAMICS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS appeal is filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (hereinafter referred in short as 'The Act') against the Suo Motu Revision order of the Joint Commissioner of Commercial Taxes (Administration), DVO -2, Bangalore (hereinafter referred in short as the 'SMR Authority'), vide No. JCCT/ADMN/DVO -2/SMR/CR/2012 -13, dated 24 -9 -2012, who, set aside the reassessment order dated 29 -3 -2012 passed under Section 39(1) of the Act, by the Deputy Commissioner of Commercial Taxes (Audit -2.6), DVO -2, Bangalore (hereinafter referred in short as the 'AA') for the financial year 2010 -11. The facts of the case in brief are stated thus:

(2.) THE ACCT (Enforcement -8), South Zone, Bangalore conducted test purchase of a wash basin worth Rs. 595/ -, through an Inspector of the Department, for which the appellant did not issue a regular sale invoice. Following which the ACCT (Enforcement -8), accompanied by CTO (Enforcement -12) and Inspectors, inspected the business premises of the appellant on 12 -1 -2011. During the course of inspection the officers found loose slips, indicating sales not covered by regular tax invoices, with total transactions of Rs. 29,01,136/ -. On cross verification with the books of accounts, it was noticed that the said transactions mentioned in the loose slips were not accounted for in the books of accounts.

(3.) THE appellant admitted the stock difference and the omissions and agreed to account the sales, so estimated, in the regular books of accounts and also stated before the ACCT (Enforcement -8) that after the date of the inspection committed on 12 -1 -2011 that he has already discharged an amount of Rs. 5,00,000/ - to the LVO -070 and the balance amount of Rs. 6,210/ - was discharged vide cheque addressed to the LVO -070 and handed over to the ACCT (Enforcement -8). The appellant having accepted the offence has also compounded the offence in a sum of Rs. 30,000/ -.