1999 (1) TMI 517

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....f the first respondent. He was dealing in cement and cattle-feed. There was an inspection of the business premises of the petitioner by the second respondent on September 22, 1992 and certain documents have been seized. Based on the materials gathered in such inspection, the second respondent initiated proceedings against the petitioner for imposition of penalty under section 45A of the Act. Exhib....

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....e respondents also. 2.. As already stated, the imposition of penalty was based on the materials gathered in the inspection conducted on September 22, 1992. It is alleged that the petitioner had effected unaccounted purchase and sale of cement to the tune of 1000 bags. The explanation of the petitioner that the said sales were effected through a commission agent by name Nesayyan, was rejected an....

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.... mentioned therein only if the department is able to establish that there had been wilful or contumacious conduct on the part of the dealer. Apart from that, the circumstances also must show that there was an attempt on the part of the dealer to evade the tax legitimately due to the Government or attempted to make such evasion. In the instant case, apart from the fact that the authorities have fou....

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.... the petitioner has not accounted for the sale of 1000 bags of cement, I sustain the penalty which is equal to the tax sought to be evaded. I accordingly modify exhibit P8 penalty order restricting the penalty to Rs. 14,917. The orders of the authorities are sustained to the extent mentioned above. 3.. The learned counsel appearing for the petitioner then submitted that the records seized in th....