IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 18TH FEBRUARY 2009 / 29TH MAGHA 1930 ST.Rev..No. 201 of 2007 ------------------------- T.A.38/2006 of S.T.A.TRIBUNAL,ADDL.BENCH,PALAKKAD .................... REVISION PETITIONER/RESPONDENT/APPELLANT/ASSESSEE: ------------------------------------------------------------------- PERIYANAYAKIAMMAN PLASTICS, R.V.P.PUDUR P.O., CHITTUR, PALAKKAD. REPRESENTED BY ITS MANAGING PARTNER A.BABURAJ, S/O R.C.ARUNACHALA GOUNDER, METHAI VEEDU, R.V.P.PUDUR, CHITTUR, PALAKKAD. BY ADV. SRI.SAJAN VARGHEESE K. RESPONDENT/APPELLANT/RESPONDENT/RESPONDENT: ------------------------------------------------------------ STATE OF KERALA, REPRESENTED BY THE INSPECTING ASST. COMMISSIONER, COMMERCIAL TAXES, CHITTUR, PALAKKAD. BY GOVERNMENT PLEADER, SRI.V.K.SHAMSUDEEN THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 18/02/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & K. SURENDRA MOHAN, JJ. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - S.T.Rev. No. 201 OF 2007 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 18th day of February, 2009 JUDGMENT Ramachandran Nair,J. Heard counsel for the petitioner and Government Pleader for the respondent. The revision is filed against the order of the Tribunal confirming the penalty levied on the petitioner under Section 29A (4) of the KGST Act. Petitioner is a Small Scale Industrial Unit enjoying sales tax exemption. However, when goods were brought from Tamil Nadu, the vehicle bypassed the normal route where check post is installed by the Department. On detection of goods reaching the State other than through check posts, Department detained the same and released on security. In the enquiry, petitioner was found to be involved in evasion of tax and penalty was accordingly levied. Eventhough the petitioner succeeded in first appeal; Tribunal reversed the order and restored the penalty. This revision is filed against the same. 2. After hearing both sides and after going through the orders, we find that this is a clear case of petitioner's attempt to purchase STRV : 201/07 -:2:- and bring raw-materials without the Department noticing its arrival from outside Kerala. Goods admittedly came through public carrier and there was no justification for it to bypass the check post and try to reach the petitioner's factory without Department noticing the interstate purchase. The transaction proves beyond doubt that the petitioner attempted to evade accounting of raw-materials purchased. Therefore, we uphold the levy of penalty. However, considering the fact that the petitioner is a SSI unit and goods purchased are accounted later, we reduce the penalty to one and half times the tax as against two times levied by the officer. Excess amounts received will be adjusted towards tax liability or otherwise will be refunded. (C.N.RAMACHANDRAN NAIR) Judge. (K. SURENDRA MOHAN) Judge. ttb STRV : 201/07 -:3:- STRV : 201/07 -:4:-