Imposition of penalty u/s 67(1) of KVAT sustained due to filing of an untrue/ incorrect return

Artech Realtors (P) Ltd Vs Intelligence Officer (Kerala High Court)

Kerala High Court held that filing an untrue or incorrect return in view of section 67(1)(d) of the Kerala Value Added Tax Act, 2003 [KVAT] assumes more rigour in the teeth of the onerous obligation, resulting in the imposition of a penalty. Accordingly, imposition of penalty justified.

Facts-

This Writ Petition is filed by the petitioner impugning penalty order passed by the first respondent u/s. 67(1) of the Kerala Value Added Tax Act, 2003 imposing penalty of Rs.6,06,16,380/- only being equal to double the amount of tax allegedly evaded for the financial year 2013-2014 for the offences committed, viz, turn over suppression and tax evasion. The petitioner had furnished demand drafts by way of compounding fee for Rs.8,00,000/- and tax for Rs.80,09,183/- which have been adjusted towards penalty and remitted into Government account. The petitioner was directed to pay balance penalty of Rs.5,18,07,197/-.

Conclusion-

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