2009 (6) TMI 942

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ales tax revision cases, one filed by the Revenue, and the other by the assessee, arise from orders in appeal issued by the Tribunal in penalty proceedings completed under section 29A(4) of the Kerala General Sales Tax Act, 1963. The assessee is a five-star hotel, running a hotel at Kovalam. On February 22, 2007 a consignment containing 125 cartons of foreign made foreign liquor was seized by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....efore transport by rail is not proved. Their specific case is that the quantity for which permit was issued was much more than the actual quantity brought by the assessee. We have heard senior counsel Dr. Muhamed Kutty appearing for the assessee and Special Government Pleader appearing for the Revenue. We do not find any justification to levy penalty under section 29A(4) of the Act because pena....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....through road passing through other States. Therefore obviously the goods were transported by rail in terms of the permit and the contention of the Revenue to the contrary is not correct. Since the transport was after purchase of goods from outside the State, it is clear that goods were interState purchase and from the invoices produced it is seen that Central sales tax at concessional rate is char....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....x on the transaction, pursuant to which goods are transported, penalty cannot be levied on the transaction because it is an interState purchase from outside the State and transport to the assessee's place of business in Kerala. We therefore do not find any justification to sustain the order of penalty confirmed by the Tribunal. In fact, in our view, if there is co-ordination between the excise....