https://www.taxtmi.com/caselaws?id=161674 A purchase of machinery from an outside supplier, followed by supply to a Kerala concern under a licence arrangement, was treated as two distinct transactions: an inter-State purchase and a separate local supply. The local supply was held exigible to tax under the Kerala General Sales Tax Act, and the arrangement justified an inference of possible tax evasion where the petitioner was unregistered and the goods were intercepted at the check-post. However, penalty could not be fixed mechanically at the maximum under section 29A; it had to be reworked to correspond to the tax sought to be evaded, after notice and verification of any prior assessment. en-us Mon, 17 Mar 2003 00:00:00 +0530 Mon, 03 Feb 2014 18:21:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161674 A purchase of machinery from an outside supplier, followed by supply to a Kerala concern under a licence arrangement, was treated as two distinct transactions: an inter-State purchase and a separate local supply. The local supply was held exigible to tax under the Kerala General Sales Tax Act, and the arrangement justified an inference of possible tax evasion where the petitioner was unregistered and the goods were intercepted at the check-post. However, penalty could not be fixed mechanically at the maximum under section 29A; it had to be reworked to correspond to the tax sought to be evaded, after notice and verification of any prior assessment. Case-Laws VAT and Sales Tax Mon, 17 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161674