Appeal against an order restoring a tax penalty for assessment year 2001-02. The court observed massive suppression despite filing revised returns, leading to dismissal of the appeal and upholding the penalty under Section 37 of the KGST Act.
The appeal was dismissed, upholding the penalty of Rs. 1,76,628/- imposed on the appellant.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT :
THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR &
THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN
MONDAY, THE 2ND MARCH 2009 / 11TH PHALGUNA 1930
ST.Appl..No. 10 of 2008()
------------------------AGAINST THE ORDER DATED 11/04/2008 IN O.NO..R1.6855/200608/TX of COMMR. OF COMMERCIAL TAXES, TRIVANDRUM
APPELLANT:
KAIRALI FOODS AND SPICES PUTHIYEDAM, KANJOOR PO., ERNAKULAM DT. REP. BY ITS MANAGING PARTNER, SIJU VARGHESE.
BY ADV. SRI.BOBBY JOHN SRI.P.N.DAMODARAN NAMBOODIRI
RESPONDENT(S):
STATE OF KERALA, REP. BY THE CHIEF SECRETARY, THIRUVANANTHAPURAM.
BY G.P. SRI. V.K. SHAMSUDEEN
THIS SALES TAX APPEAL HAVING BEEN FINALLY HEARD ON 02/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
C .N. RAMACHANDRAN NAIR & K. SURENDRA MOHAN, JJ.
S.T. A. No. 10 OF 2008
Dated this the 2nd day of March, 2009
JUDGMENT
Ramachandran Nair,J.
Appeal is filed against the order of the Commissioner restoring the penalty of Rs. 1,76,628/- levied on the appellant for the assessment year 2001-02. We have heard counsel appearing for the appellant and Government Pleader. On going through the orders we find that the turnover returned by the appellant in the original return was Rs.17,41,117/-. However, when the Intelligence Officer verified the accounts massive suppression was detected. Even though appellant filed revised returns declaring turnover of Rs. 36,60,998/- which is more by Rs. 19,19,881/- from the original turnover, the Intelligence Officer levied penalty. Even though in first revision penalty was reduced on the ground that appellant was entitled to exemption of substantial turnover, it is seen that most of the items sold are items on which exemption is not available. Therefore the commissioner restored
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the penalty in exercise of powers under Section 37 of the KGST Act against which this appeal is filed. We find from the Commissioner's order that appellant is systematically engaged in evasion of tax and when massive evasion was detected, he sustained the penalty. We do not find any ground to interfere with the order of the commissioner, more so because difference between the turnover originally returned and revised by the appellant is more than equal amount. Suppression is therefore above 100 per cent. We therefore dismiss the appeal.
(C.N.RAMACHANDRAN NAIR) Judge.
(K. SURENDRA MOHAN)
Judge.
kk
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2 issues framed by the court
Whether the High Court should interfere with the Commissioner's order restoring penalty for tax evasion despite the filing of revised returns.
Whether the difference between original and revised declared turnover sufficiently negates the allegation of systematic tax evasion.
1 provisions across 1 enactments
Kairali Foods and Spices Puthiyedam
State of Kerala
C.N. Ramachandran Nair
K. Surendra Mohan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
