TaxTMI 
TaxTMI 
2014 (5) TMI 415
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....e 'penalty' already imposed upon petitioner, by virtue of Ext.P7. 2. The sequence of events is as follows: The petitioner company is a dealer in lubricating oils and such other goods, including spare parts of tractor. In the course of the business, the petitioner used to bring goods from outside, by way of stock transfer, from other branches, as well as from the head office situated outside the State. The lubricating oil marketed by the petitioner was eligible to entry tax under Section 3 of the Kerala Tax on Entry of Goods into Local Area Act, 1994 at the specific rate and Section 4 provides for a reduction in entry tax, to the extent of tax paid under the KGST/KVAT Act. The case of the petitioner is that, entry tax in respect of the ab....
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....tioner to avail the statutory remedy; observing that the period during which the writ petition was pending before this Court shall be given credit to, with regard to the question of condoning the delay, if at all any such course was availed of. With regard to Ext.P9 notice (Ext.P5 herein) under Section 67(1) of the KVAT Act, it was held that the same was only a notice and hence was premature to have the challenge entertained in a writ petition. 5. Being aggrieved by the above verdict, the petitioner approached the Division Bench of this Court by filing W.A. No. 514/2007 which culminated in Ext.P9 judgment. The case of the petitioner was that, the idea and understanding of the assessing authority as to the absence of any provision i....
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....e subject matter of the challenge in this writ petition. 7. The respondents have filed a counter affidavit seeking to sustain the impugned proceedings, referring to the facts and figures as borne out from the materials on record. 8. The learned counsel for the petitioner submits that Ext.P11 passed by the assessing authority is per-se wrong and illegal, in so far as it is not in conformity with the specific direction given by the Division Bench of this Court vide Ext.P9 judgment. Attention of this Court was brought to the fact that the challenge raised by the petitioner was both in respect of the 'assessment' as well as the 'penalty'. But the fact remains that, in W.P.(C) No.22607/2006, the challenge was in respect of the assessmen....
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....ngly. 9. Regarding the imposition of penalty, this Court finds that Ext.P5 notice was issued under Section 67(1) of the KVAT Act on the following two grounds: "The assessee is a dealer in lube oil, grease, tractor parts etc. The goods for sale were received as stock transfer from the Head Office and other branches situated outside the State. Entry tax was paid for the entire stock transfer receipt and since they were intended for resale in the sate the entry tax paid was claimed as special rebate every month under Section 12 of the KVAT Act 2003. Subsequently a portion of the goods so received were seen re-transferred to other branches outside the State. So these goods, against which special rebate was claimed under Seciton 12(1), were su....
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....turn submitted by the petitioner was rejected and the assessment proceedings were finalized imposing a further tax liability to the tune of Rs.2,40,396/-(Rupees two lakhs forty thousand three hundred and ninety six). It is in respect of said event, that the penalty to the tune of Rs 17,02,419/-(Rupees seventy lakhs two thousand four hundred and nineteen) as given in Ext.P7 is left in tact, without being altered in any manner, in spite of the change in the course of events resulted by virtue of the decision passed by the Division Bench of this Court vide Ext.P9. The learned counsel further submits that the very basis for having pursued such a course was with reference to the claim of the petitioner to have the refund/set off, which was initi....