IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR TUESDAY, THE 22ND JULY 2008 / 31ST ASHADHA 1930 WP(C).No. 16620 of 2003(C) -------------------------- PETITIONER(S): --------------- POLAKULATH TOURIST HOME, NARAYAMANGALAM, KODUNGALOOR, TRICHUR DIST., REP. BY ITS PROPRIETOR, MR.P.K.NARAYANAN. BY ADV. SMT.S.K.DEVI SRI.M.RAJ MOHAN SRI.SANTHOSH P.ABRAHAM SMT.DEEPSUR D.JAYAN SRI.K.P.PRADEEP (PAYYANNUR) RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER, SQUAD III, COMMERCIAL TAXES, THRISSUR. 2. THE DEPUTY COMMSSIONER, COMMERCIAL TAXES, THRISSUR. 3. THE COMMISSIONER, OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM. BY G.P. SRI.TEKCHAND THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER IN I.A. NO.1620/2003 IN W.P.(C) NO.16620/2003 DISMISSED: 22.7.2008 SD/-(C.N.RAMACHANDRAN NAIR, JUDGE.) APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF ORDER DT.12.11.2001 PASSED BY R1. P2: TRUE COPY OF ORDER DT.26.3.2002 PASSED BY R2. P3: TRUE COPY OF ORDER DT.2.5.2003 PASSED BY R3. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.16620 of 2003 .................................................................... Dated this the 22nd day of July, 2008. JUDGMENT Heard counsel for the petitioner and Government Pleader. The petitioner's bar hotel was inspected by the Sales Tax Intelligence Squad on 12.1.2001. During inspection, massive unaccounted transactions were noticed. The Intelligence Officer verified the stock variation, both excess and shortage and levied penalty at twice the amount of tax attributable to the unaccounted transactions estimated by him. Even though in first revision the findings are confirmed, the Deputy Commissioner reduced the penalty holding that evasion is only in respect of TOT. However, the Commissioner in suo moto revision under Section 37 reversed the order of the Deputy Commissioner and restored the original penalty. The second revision filed by the petitioner was dismissed by the very same order. It is against this common order the petitioner has filed this W.P. 2. On going through the orders of the three authorities I find that all of them concurrently found that there was unaccounted purchase and sale of liquor by the petitioner. The only organisation supplying liquor through proper channel in the State is Kerala State Beverages Corporation Ltd. 2 which is a Government of Kerala undertaking. I do not think there can be any difficulty for the petitioner to maintain proper accounts for the purchase and sale of liquor when it is sourced only through Government. Obviously excess noticed may represent liquor sourced from elsewhere or otherwise purchase bills and other records should have been available. It is seen that besides excess stock noticed, there was substantial quantity of shortage of liquor also. According to the petitioner, accounts could not be maintained properly because of the large business on account of temple festival going on in the area. Having regard to the contentions raised and since both shortage and excess were noticed, I feel some leniency is called for. Accordingly, penalty levied is reduced to one and a half times the tax amount as against two times levied and sustained by the Commissioner. W.P. is disposed of as above. C.N.RAMACHANDRAN NAIR Judge pms