2026 (9) TMI 541

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....07.2024 passed by the Karnataka Appellate Tribunal in STA No. 337/2018, whereby the Tribunal allowed the appeal filed by the respondent-assessee and set aside the penalty levied under Section 53(12) of the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as 'the Act'). 2. The brief facts necessary for disposal of this petition are as follows: The respondent, a dealer registered under the Pondicherry Value Added Tax Act, 2007 and the Central Sales Tax Act, 1956, imported tin ingots and cleared the same at Kandla Port, Gujarat, under Bill of Entry No. 7167257 dated 20.10.2016. The goods were being transported by road in vehicle bearing No. GJ-10-Z-5018 to the respondent's place of business in Pondicherry. On 07.11.2016....

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....ered by the respondent, recorded a finding that the movement was a genuine inter-State transport of imported goods destined for Pondicherry for home consumption. The Tribunal further held that the temporary unloading at the premises of M/s. Oswal Minerals Limited was explained as a measure for transshipment due to practical difficulties, and that no material was produced by the revenue to establish any intention to evade tax payable in Karnataka. Relying on the decisions of this Court, the Tribunal set aside the penalty. 6. The contention of the State is that non-compliance with Section 53(2) of the Act automatically attracts penalty under Section 53(12), that the provision is mandatory, and that mens rea is not a necessary ingredient fo....