TaxTMI 
TaxTMI 
2014 (5) TMI 371
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....of thermal power project at Nandikur village of Udupi District. 3. The appellant's office at Bangalore situated within the jurisdiction of local VAT officer 020. However, in the year 2007, appellant has shifted the Principal place of business from VAT officer 020 to VAT officer 055 w.e.f. 05-11-2007 and the same was communicated to the competent authorities in the prescribed Form VAT-3. 4. The case of the appellant is that they had taken the contract work of installation of thermal power project at Nandikur village, Udupi District. After completion of the project, they took up execution of project at Kondappalli, Ibrahimpatna at Vijayawada in Andhra Pradesh. The Steel centering materials and other materials lying at the work place of Nandikur village, Udupi District were required to be moved to the project site at Kondappalli. As per Rule 157 of KVAT Rules, the Delivery Note in Form VAT 505 are the documents prescribed to be carried by persons-incharge of the goods vehicle for transportation. The available Form VAT 505 was made use for the purpose of transportation of Steel centering work from the thermal power project, Nandikur to Kondappalli, 5 lorry loads of steel cribs we....
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....at the goods being transported were not for sale and it is only a stock transfer. No tax can be levied on the said goods and there is no revenue loss to the State Government. The Revisional Authority by its order dated 15-09-2010 allowed the revision petition and set aside the order passed by the First Appellate Authority and restored the order passed by the Checkpost authorities imposing penalty, on the ground that the action of the appellant is in infraction of law and violated Section 53(2)(b) read with Rule 157(1) of the Rules. Being aggrieved by the order dated 15-09-2010 passed by the Additional Commissioner Commercial Tax, Zone-I under Section 64-1 of the KAVT Act. 7. Sri.M.Thirumalesh, learned counsel appearing for the appellant contended that the order passed by the Revisional authority is contrary to law. The notification dated 21-3-2009 issued by the Commissioner of Commercial Taxes is not applicable since the appellant's Principal office is situated within the jurisdiction of LVO 055. The notification dated 21-03-2009 is applicable only insofar as the jurisdictions that fall within LVO 020, LVO 065 and LVO 075. This aspect of the matter is completely overlooked by th....
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....ddressed by the learned counsel for the parties and perused the orders impugned and provisions of law. 10. Upon hearing the learned Counsel for the parties, the only question that arise for our consideration in this appeal is : Whether the Revisional authority is justified in setting aside the order passed by the First Appellate Authority and also invoking Section 64(1) of the Act is sustainable? 11. The records clearly disclose that 5 goods vehicles of M/s.Ashoka Road Lines were carrying steel cribs (centering material) from the thermal power project area, Nandikur village, Udupi Taluk to the project site of the appellant situated at Kondapalli, Ibrahim Pattnam, Vijayawada District in Andhara Pradesh. The said vehicles were intercepted by the Check-post authorities, at Nelamangala. The person in-charge of the goods vehicles tendered the document for verification of the Check-post authorities. The Check-post authorities found that they are not the valid documents for moving goods in view of the notification dated 21-3-2009 issued by the Commissioner of Commercial Taxes. The Checkpost authorities held that the dealers borne on the file of the office/LVOs notifi....
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.... said goods does not arise. It is only a stock transfer from one project area to another. In the case of inter-State stock transfer, the question of payment of tax does not arise. The reasons assigned by the appellant for using the old Forms was issued by the Tax Authorities cannot be doubted, since Nandikur village is a remote area where there is no access to internet. Further, User name and password pertaining to the Commercial Tax Department Website cannot be shared to all the staff members of the Company to avoid any misuse of the same. Though the notification was issued on 21-3-2009, new forms were released only in the month of May 2009. In view of urgency, the appellant has used the old forms, which were issued by the Commercial Tax Department. Further there is no question of payment of tax involved in the said transaction. No malafide intention could be attributed on the part of the appellant in carrying Form VAT 505 obtained by the Department and the Electronically generated forms were introduced subsequently, which was not within the knowledge of the appellant. Since, the principal office has already been shifted from LVO 020 to LVO 055, the notification issued by the Comm....