2011 (9) TMI 913

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....ed company, engaged in the sale of beauty, health, wellness and fashion accessories and cosmetics and other products. It is carrying on the business in Bangalore. It sells its products under the branch as "NEWU". It is having its units in Delhi, Karnataka and Andhra Pradesh and having few branches in Bangalore itself. They have central warehouse in Manesar in the State of Haryana. The goods are sent to different branches through the central warehouse. As a company is having many branches, it has allotted different local code to each branch for identification. For example for RMZ Infinity code is 1551, for Brigade 1552, etc. While preparing the stock transfer document through SAP system, the respective codes are mentioned as source and desti....

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....sed the appellate authority and restored the order passed by the check-post officer. Aggrieved by the said order, the assessee is before this court. The learned counsel for the assessee assailing the impugned order contended in the first place that this was a case of stock transfer and therefore, the question of payment of penalty does not arise. Secondly, he contended that as the premises at RMZ Infinity, Old Madras Road, was under renovation and it was not ready for occupation, the said goods were being unloaded at Jayanagar office, for which they had already filed an application for certificate, which was subsequently issued and therefore, the check-post officer was in error in holding that it was unloaded at uncertified jurisdictiona....

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....thority was right in initiating the proceedings under section 64(1) of the KVAT Act? (4) Whether on the facts or the circumstances of the case, the revisional authority has proved that, the penalty is revenue for the Government? (5) Whether, on the facts of the circumstances of the case, the revisional authority was right in coming to the conclusion that, the men rea is not necessary in levying the penalty under section 53(12) of the KVAT Act? In the light of the aforesaid facts and the rival contentions, the point that arises for our consideration is whether the revisional authority was justified in initiating suo motu revisional proceedings and in passing the impugned order. We have looked into the stock transfer note. It is a....