TaxTMI 
TaxTMI 
2008 (1) TMI 845
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....ce the purchases were denied by the dealers in Kerala, notices were issued to the appellant under section 30B(4) of the KGST Act asking to prove the sale with the identity of dealers in Kerala. The appellant sought opportunity to cross-examine the purchasers in Kerala. Even though notices were issued, the purchasers did not turn up to give evidence for the appellant. However, the appellant did not produce any evidence regarding the details of payments received or receipts issued. In other words, transactions could not be proved by the appellant as sales made to the dealers shown in the documents. This lead to levy of penalty on the appellant under section 30B(4) of the KGST Act. When the appellant filed revision against the orders issued by....
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....s referred to in sub-section (1) to the last check-post, it shall be presumed that such goods which are liable to tax under this Act have been delivered within the State for sale: Provided that where the goods carried by such vehicle or vessel are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the onus of proving that goods have actually moved out of the State, shall be on the owner or driver or person in charge of the vehicle or the vessel, as the case may be. (3) Where it is presumed under sub-section (2) that the goods carried in a vehicle or vessel have been delivered within the State for sale by the owner or driver or person in charge of the vehicle or vessel, such owner or....
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.... the owner or driver or person in charge of the vehicle or vessel shall, unless he is a registered dealer under this Act, be deemed to be a registered dealer for assessment of tax under this Act." The question arising for consideration is whether penalty can be levied along with tax or independently under section 30B(4) of the KGST Act. The case of the petitioner is that in the absence of specific provision providing for penalty under section 30B(4) of the KGST Act penalty cannot be levied in proceedings initiated for levy of tax under the said provision. However, on the other hand the Government Pleader submits that clause (3) of section 30B provides for levy of penalty along with tax and so much so penalty can be levied along with tax on....
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....s concerned, the principle therein is similar to that contained in section 30B(2) of the Act. While clause (2) provides for a presumption of liability on the person who fails to surrender the transit pass at the check-post, clause (4) authorises presumption of local sale in the State by the dealer who transports the goods from outside the Kerala State to Kerala but fails to prove the nature of transaction in Kerala. What is stated in clause (4) is that a dealer transporting goods to Kerala on failing to prove the transaction will be liable to pay tax under the Act in Kerala. The principle contained in both clauses (2) and (4) of section 30B are one and the same because levy of tax is not on actual sales but based on presumption permissible ....