TaxTMI 
TaxTMI 
2015 (9) TMI 1513
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....petitioner's business premises was inspected by the 3^rd respondent on 18.8.2009, which resulted in initiation of penalty proceedings under sub-sections (8) and (10) of Section 44 of the KVAT Act, on the ground that one of the godowns where the petitioner had stored some goods was not specifically included in the certificate of registration. The 3rd respondent issued Ext.P1 order dated 6.10.2009 under sub-sections (8) and (10) of Section 44 of the KVAT Act, read with Rule 61 of KVAT Rules, imposing a penalty of Rs. 8,33,450/- being 50% of the value of goods, for the offence of storing and stocking unaccounted goods in the undeclared godown. 3. Aggrieved by Ext.P1 order, the petitioner filed Ext.P2 appeal dated 16.12.2009 before the Deputy Commissioner (Appeals), Kollam, under Section 55 of the KVAT Act. Though the initial hearing with regard to stay of collection of penalty was heard by the Deputy Commissioner (Appeals), the files relating to Ext.P2 appeal was later transferred to the Deputy Commissioner, Commercial Taxes, Pathanamthitta, the 2nd respondent herein, consequent to the amendment of Section 55 of the KVAT Act, vide the Kerala Finance Act, 2014. As per the amendm....
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....ion conducted in its business place on 18.8.2009. The petitioner was issued with a notice dated 18.8.2009 of the Intelligence Officer, Squad II, Pathanamthitta, alleging that, the godown at Lord's Arcade Thiruvalla, is not declared and entered in the certificate of registration. Based on the physical stock of goods stored in the said godown, the Intelligence Officer proposed to impose a penalty of Rs. 8,33,450/-, under sub-section (8) of Section 44 of the KVAT Act, being 50% of the value of the taxable goods not accounted for, and to treat the said stock as stock out side the regular books of account. To the said notice, the petitioner submitted its objection dated 31.8.2009 and the Intelligence Officer by Ext.P1 order imposed a penalty of Rs. 8,33,450/-, under sub-section (8) of Section 44 of the KVAT Act, being 50% of the value of the taxable goods not accounted for, and treated the said stock as stock out side the regular books of account, under sub-section (10) of Section 44 of the KVAT Act. Ext.P1 order of penalty was under challenge in Ext.P2 appeal dated 16.12.2009 filed before the Deputy Commissioner (Appeals), Kollam, under Section 55 of the KVAT Act. 9. During the ....
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....d such authority shall consider the same as if it is an appeal filed before it.] Provided also that no appeal shall be entertained under this sub-section unless it is accompanied by satisfactory proof of the payment of the tax or other amounts admitted by the appellant to be due or such installment thereof as might have become payable, as the case may be, where the appeal is against an assessment completed under sub section (6) of section 23, or under section 24 or section 25." [* substituted/inserted by the Kerala Finance Act, 2014] 10. In view of the amendment made to sub-section (1) of Section 55 of the KVAT Act, an order imposing penalty under sub-section (8) of Section 44 or under Section 67 of the KVAT Act became not appealable, with effect from 1.4.2014. However, the third proviso to sub-section (1) of Section 55 provides that, where an order of the assessing authority which has become not appealable with effect from 1.4.2014 by virtue of the Kerala Finance Bill, 2014 is pending in appeal under that Section, such appeal shall stand transferred to the appropriate authority under the KVAT Act and such authority shall consider the same as if it is an appeal filed befor....
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....y and patently illegal. By virtue of the amendment made to sub-section (1) of Section 55 of the KVAT Act, an order imposing penalty under sub-section (8) of Section 44 or under Section 67 of the KVAT Act became not appealable, with effect from 1.4.2014. Therefore, with effect from the aforesaid date, a dealer who is aggrieved by an order imposing penalty under sub section (8) of Section 44 or under Section 67 of the KVAT Act has to avail the revisional jurisdiction provided under Section 57 of the KVAT Act, by filing an application for revision. However, in the case of an appeal already pending before the Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals), arising out of orders issued under sub-sections (8) and (9) of Section 44, Section 67, etc., an exception is carved out in the third proviso to sub-section (1) of Section 55 of the KVAT Act, by providing that the pending appeal shall stand transferred to the appropriate authority under the KVAT Act and such authority shall consider the same as if it is an appeal filed before it. Therefore, on such an appeal being transferred to the appropriate authority, namely, the Deputy Commissioner, the said authority has to c....