Karnataka High Court
M/S Time Tech India Pvt Ltd vs The State Of Karnataka on 10 August, 2012
Bench: K.Sreedhar Rao, B.Manohar
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IN THE HIGH COURT OF KARNATAKA, BANGALORE
DATED THIS THE 10TH DAY OF AUGUST, 2012
PRESENT
THE HON'BLE MR. JUSTICE K.SREEDHAR RAO
AND
THE HON'BLE MR. JUSTICE B.MANOHAR
S.T.A. No.40 OF 2010
BETWEEN:-
M/s. Time Tech India Pvt. Ltd.,
No.896, 7th Main Road,
3rd Cross, Prakash Nagar,
Bangalore,
Rep. by Branch Manager,
Sri Krishna V. Patil,
S/o. Vasantha Rao Patil,
Aged 39 years.
Appellant
(By Sri K.S. Suryanarayana, Advocate)
AND:-
The State of Karnataka
Rep. by Additional Commissioner of Commercial Taxes,
Zone-1, 1st Main Road,
Gandhinagar,
Bangalore.
Respondent
(By Smt. S. Sujatha, AGA)
This S.T.A. is filed U/s.66(1) of the Karnataka Value
Added Tax Act, against the Revision Order dated 07.04.2010
passed in No.ZAC-1/BCD/SMR-75/09-10, on the file of the
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Addl. Commissioner of Commercial Taxes, Zone-I, Bangalore,
rejecting the contentions raised by the dealer assessee,
consequently setting aside the appeal order and restoring the
order of penalty. Accordingly, concluding the revision
proceedings.
This appeal is coming on for hearing this day,
SREEDHAR RAO, J., delivered the following:
JUDGMENT
The Appellant - assessee is a dealer in plywood. On 7.2.2009, the assessee was transporting ply wood in the lorry from Bangalore to his branch at Chennai in Tamilnadu. The check post of respondent checked the vehicle. The driver produced the tax invoice, L.R and declaration to the effect that it is a case of branch transfer. The driver did not produce the delivery note. The check post authorities issued notice U/s 53(12) of KVAT Act and detained the vehicle. The assessee later on approached the authorities and produced the delivery note. The check post authorities did not accept it and held that transportation is in contravention of Section 53 r/w Rule 157 of the KVAT Act. The authorities have also relied upon the notification of the Commissioner dated 5.11.06. The A.O levied the penalty U/s 53(12) of 3 KVAT Act. The assessee aggrieved by the said order, filed an appeal.
2. The Appellate Authority upheld the explanation of the assessee and allowed the appeal. The Addl. Commissioner in revision restored the order of the Check Post Officer. Hence this appeal.
3. The provisions of Section 53 of the KVAT Act applies to a transfer of goods inter-State i.e., from place to place in the State. In the instant case, it is not disputed by the respondent that it is a inter State Transport and the assessee had produced sufficient material to show that the transport was genuine transport from branch to branch. The contention that there was no delivery note, the assessee should suffer penalty, appears to be untenable contention. The check post is almost on the border of the Karnataka State boundary. There was no possibility to divert the goods inter-State. The goods were accompanied by the authenticated documents. It is evident from the material that it is a inter State movement and branch to branch transfer in which event the question of liability U/s.53 of the KVAT 4 Act does not arise. Section 53 of the KVAT Act applies when there is movement of goods within the State itself. When it is a inter state transport, the provisions of Section 53 of the KVAT Act, do not apply. Therefore, the order of the appellate authority is sound and proper. The order passed in revision is set aside.
Sd/-
JUDGE Sd/-
JUDGE NM*