2019 (8) TMI 35

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..... 2. The revision petitioner, who is an assessee under the Kerala Value Added Tax Act,2003('KVAT Act' for short] has effected intra state transport of steel products on 20.01.2014, which was intercepted by the Intelligence Inspector, Squad No.IV, Commercial Taxes, Kozhikode at Koyilandy, at about 17.00 hours. A notice under Rule 67 of the Kerala Value Added Tax Rules,2005 was issued demanding payment of security to the tune of Rs. 40,370/- raising suspicion of attempt at evasion of payment of tax due on the transport, based on the irregularity noticed that the 'Delivery Note' accompanying the transport was written without using double sided carbon, as required under the relevant Rules. It is stated that goods were released....

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....there existed attempt at evasion of payment of tax. Before the first Appellate Authority the contention raised by the revision petitioner was that, the Enquiry Officer has not arrived at any specific finding that the failure to use the double sided carbon paper was for any purpose of evading the payment of tax. Hence the imposition of penalty was assailed. The Appellate Authority found that the above contention cannot be accepted because there occurred violation of the mandatory provisions in drawing the Delivery Note, which creates suspicion that there was attempt at evasion of payment of tax. Therefore the appeal was rejected finding as meritless. 4. The Tribunal, while appreciating the contentions, had repelled the argument that the de....