2017 (1) TMI 200

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.... material, and after examining the books of account the AO found that the assessee had sold goods which he had shown inter-state sales amounting to Rs. 1,44,550/- and Rs. 6,47,947/- and on the contrary it was shown as sales tax paid in the books of account and noticing the same fact, a notice for reopening was issued u/s 30 of the RST Act. The AO issued show cause notice and brought to the notice of the assessee that there was a wrong claim made that all the goods shown hereinabove were sales tax paid whereas there were inter State sale and, therefore, tax was levied. Accordingly, the AO charged CST @ 4% and also interest and held that since the assessee had concealed the material facts, was liable to penalty u/s 65 of the Act. 3. The matt....

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....as got conducted from any of the buyers by the AO and it was mandatory to come to such a conclusion that it was inter State sale. Learned counsel also contended that penalty u/s 65 is not at all leviable particularly in view of the fact that all the transactions were recorded in the books of account, there was a specific finding by the AO assessing originally that all the transactions were recorded in the books of account. Even in the reassessment the AO has disputed only on the above facts, to be inter-State sale while he also has accepted that the sales were recorded and no penalty is leviable. He relied upon Binani Industries Limited v. Assistant Commissioner of Commercial Taxes, VI Circle, Bangalore & Others [2007] 6 VST 783 (SC), Otis ....

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.... on the assessee to show that the goods were sold to buyers of another State and no material was proved by the assessee to bring on record that the goods were delivered in the State of Rajasthan. Learned counsel also contended that it is a clear cut case of evasion of tax and penalty was rightly levied by the AO and sustained by the Tax Board and the fact of such sale came to notice at the time of survey and accordingly prayed that the order is just and proper and is not required to be interfered with. 8. I have considered the arguments advanced by the learned counsel for the parties and in my view the reopening of the assessment by the AO appears to be well reasoned taking into consideration that new facts and material came on record at t....