TaxTMI 
TaxTMI 
2011 (2) TMI 1325
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....lso engaged in trading in de-oiled rice bran and broken rice to some extent. It has a branch office at Coimbatore in Tamil Nadu. The assessee is registered as a dealer under the provisions of the Karnataka Sales Tax Act, 1957. The assessee filed a return of turnover in respect of the assessment year 2001-02 declaring a taxable turnover relating to inter-State sales of de-oiled rice bran and rice bran oil liable to tax under the Central Sales Tax Act, 1956 (for short, hereinafter referred to as, "the Act") at Rs. 2,75,39,302.94. It claimed exemption in respect of stock transfer of de-oiled rice bran to its branch in Coimbatore at Rs. 5,80,70,426. They were duly supported by form F issued by the said branch office. The assessing authority ver....
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....Karnataka on account of which the goods moved form Karnataka State to Tamil Nadu, the Central sales tax is not liable to be paid. This goods were transferred from their head office at Mandya to their branch office at Coimbatore in Tamil Nadu. It is a case of stock transfer, which is evident from F form, and the branch in turn has sold these goods to the local dealers and they have paid the tax under the Tamil Nadu General Sales Tax Act. Therefore, the authorities were not justified in disallowing the claim to the extent they have done. He submitted that when the entire transactions are shown in the return filed, there is no suppression of any material. At the worst, it may be a case of different opinion and on that ground, in law, no penalt....
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....fers. The assessee has paid the Central sales tax in respect of a turnover of Rs. 2,75,39,302.94 paise. However, he claimed exemption in respect of de-oiled rice bran to its branch in Coimbatore in a sum of Rs. 5,80,70,426 as stock transfers. In the course of investigation, the Assistant Commissioner of Commercial Tax (Intelligence III), Mysore, inspected the business premises on December 4, 2003 and noticed that the sales were conducted to outside consignees. Eight freight letter pads maintained by the assessee for despatch of de-oiled rice bran directly to the outside consignees were noticed and they were seized by the inspecting authorities by passing seizure orders under section 28(3) of the Act. The freight letters contain name and add....
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....to the extent of Rs. 2,24,24,991 is to be treated as inter-State sales and therefore, it concluded the assessment order levying a tax of Rs. 17,12,195. 6. Thereafter, consequent to the said order, a notice was issued proposing to levy the penalty under section 9(2) read with section 12(4) of the Karnataka Sales Tax Act, 1957. The assessee contended that the transaction under question are stock transfer and hence, requested for dropping of the penal action. After considering the said request, as the material available dearly showed that the assessee has actually effected inter-State sale of de-oiled rice bran form Mandya District (State of Karnataka) to the different parties in the State of Tamil Nadu and the assessee sent a confirmat....
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.... out above after passing the assessment order, notice was issued to the assessee so as to hear him in the matter and relying on the very material, the assessing authority has recorded a finding that the conduct of the assessee shows the quality mind to evade payment of tax and after referring to the various acts, he found that a case for imposing penalty is made out. When the entire order imposing penalty is read as a whole, it is obvious that the authorities applied their mind and considered the objections of the assessee keeping the law in the background and have rightly imposed the minimum penalty leviable under the Act. In fact, the learned counsel for the assessee relied on various judgments of the apex court where it has been held tha....