2016 (9) TMI 825

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on Form No.43 issued by the purchaser. However, penalty proceedings had been taken by issuance of notice under Section 67(1) of the KVAT Act inter alia observing that the commodity described in Form No.43 did not come within the purview of Section 6(7)(b) of the KVAT Act 2003. Though the petitioner preferred objection without considering the same penalty orders had been passed by which the petitioner had been called upon to pay double the amount of tax sought to be paid for the respective years. Without challenging the impugned orders by way of statutory revision, petitioner had approached this Court inter alia contending that the penalty proceedings had been taken without jurisdiction. 2. W.P. (C) No.24007/2016 has been filed challengin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r case of evasion of tax which has been deliberate and there is justification on the part of the Intelligence Officer who have initiated proceedings under Section 67(1) of the Act and passed final orders. It is also stated that there is no legal bar for issuing a fresh notice under Section 25(1) of the KVAT Act on the basis of the material made available after investigation. In paragraph 9 of the counter affidavit it is stated as under: "In the VAT scenario self assessment is being taken place. The Assessing Authority has normally no means to physically verify the goods dealt with by the dealer. It is the duty of the Intelligence Wing to verify those aspects and initiate action, if any discrepancies are noticed. Hence the absence of acti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....apparently is a dealer in cleaning material. Statute exempts certain items from being taxed. Contention of the petitioner is that cleaning material being a consumable supplied to an establishment in Special Economic Zone of the State, it is liable to be exempted. But, a close reading of the Statute would show that the consumable used by the developer or industrial unit or establishments situated in the Special Economic Zone should be for setting up of the unit or use in the manufacture of other goods. The cleaning material used for the purpose of cleaning the building and other facilities, furniture etc cannot be treated as a consumable used in relation to setting up of the unit or in the manufacture of other goods. Therefore, it is apparen....