The State Of Kerala vs Steel Emporium
2022 Latest Caselaw 11440 Ker

            IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
              THE HONOURABLE MR.JUSTICE S.V.BHATTI
                                   &
             THE HONOURABLE MR.JUSTICE BASANT BALAJI
  TUESDAY, THE 6TH DAY OF DECEMBER 2022 / 15TH AGRAHAYANA,
                                 1944
                      OT.REV NO. 65 OF 2020
   TAVAT 268/2019 OF AGRL.I.T.ADDITIONAL BENCH,KOZHIKODE
REVISION PETITIONER/S:

            THE STATE OF KERALA
            REPRESENTED BY THE DEPUTY COMMISSIONER OF STATE
            TAX (LAW), DEPARTMENT OF KERALA STATE GOODS AND
            SERVICE TAX, ERNAKULAM.

            BY GP, SMT JASMINE



RESPONDENT/S:

            STEEL EMPORIUM
            SOUTH BAZAR, KANNUR 670 002.

            BY ADVS.
            SRI.V.P.NARAYANAN
            SMT.DIVYA RAVINDRAN
            SRI.R.BHASKARA KRISHNAN




     THIS    OTHER   TAX   REVISION     (VAT)     HAVING    COME   UP   FOR
ADMISSION    ON   06.12.2022,     THE     COURT    ON      THE   SAME   DAY
DELIVERED THE FOLLOWING:
 OT.REV NO. 65 OF 2020


                                      -2-


                               S.V.BHATTI
                      & BASANT BALAJI, JJ.
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                     O.T.REV NO. 65 OF 2020
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                                   ORDER

th (Dated this the 6 day of December 2022)

Basant Balaji J.,

This revision is filed challenging the order of the

Tribunal in TA (VAT) No.268 of 2019 dated 30.9.2019.

The second appeal was filed against the order of

assessment made by the Sales Tax Officer confirmed by the

first appellate authority.

2. The assessee is a dealer in M.S.Angles, M.S.Rods,

M.S. TMT Tor etc. On 17.03.2016, the Intelligence

Inspector Squad No.II, Commercial Taxes, Tirur,

intercepted the vehicle with Reg.No.HR55F-8889, with OT.REV NO. 65 OF 2020

goods transported by the respondent and on verification, it

was found that the only document accompanied with the

goods was the invoice of M/s.P.H.Mohammed Kunju and

Brothers, Ernakulam, dated 12.03.2016 to the respondent

noting the place of delivery at Tirur. The Intelligence

Inspector found that the date of detention was on

17.03.2016 and the date of invoice was on 12.03.2016 and

there is a delay of four days. Accordingly, a notice in

Form No.17-A was issued to the respondent affording an

opportunity to show cause for the defects noted in the said

notice or to furnish security for the release of the goods.

The respondent approached this court by filing W.P.(C)

No.11042 of 2016, and as per the judgment dated

22.03.2016 directed to release the goods and vehicle on OT.REV NO. 65 OF 2020

payment of 30% of the security amount demanded and

furnishing simple bond for the balance amount. Thereafter,

the files were submitted to the Intelligence Officer, Squad

No.IV, Commercial Taxes, Kannur, for conducting enquiry

and after obtaining the reply filed by the petitioner, the

Intelligence Officer found that Form No.15/delivery note

which is a mandatory requirement for transportation of

goods was not accompanied with the goods and hence, vide

order dated 20.11.2011, imposed a penalty of

Rs.1,29,155/-, after adjusting security deposit and

demanded balance penalty amount. The final assessment

was completed on 30.11.2017. Aggrieved by the final

assessment, the assessee filed the first appeal as VATA 58

of 2018. The First Appellate Authority/ Assistant OT.REV NO. 65 OF 2020

Commissioner (Appeals), Kannur, dismissed VATA No.58

of 2018 against which TA(VAT) No.268 of 2019 was filed

by the petitioner. Impugning the order imposing penalty,

the respondents filed TA(VAT) No.967 of 2018 before the

Tribunal and the Tribunal has already found that there is no

turnover suppression on the part of the assessee warranting

the judgment/assessment and therefore the second appeal

was allowed. Importing the same reasons, the second

appeal regarding the assessment was allowed. Challenging

the order of the Tribunal, this revision is filed by the State

under Section 63 of the Kerala Value Added Tax Act,

2003.

3. We have already held in OTR No.21 of 2020 that

the order passed by the Tribunal setting aside the order of OT.REV NO. 65 OF 2020

the Intelligence Officer imposing penalty is correct. In

view of the said order, this revision challenging the order

of the Tribunal allowing the appeal and setting aside the

assessment has to be sustained and we do so. There is no

illegality and impropriety in the order passed by the

Tribunal and the revision fails, accordingly.

In the result, this Revision Petition is dismissed.

Sd/-

S.V.BHATTI, JUDGE

sd/-

BASANT BALAJI, JUDGE dl/ OT.REV NO. 65 OF 2020

APPENDIX OF OT.REV 65/2020

PETITIONER ANNEXURES

ANNEXURE A A TRUE COPY OF ASSESSMENT ORDER UNDER SECTION 25(1) OF KVAT ACT DATED 30.11.2017 BEARING NO. 32120224964/2015- 16 PASSED BY THE STATE TX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT, THIRD CIRCLE, KANNUR.

ANNEXURE B A TRUE COPY OF THE ORDER DATED 28.11.2018 IN KVATA NO. 58 OF 2018.

ANNEXURE C CERTIFIED COPY OF THE ORDER OF THE TRIBUNAL IN T.A. (VAT) NO. 268 OF 2019 DATED 30.09.2019.