Kiran Jewels (India) Vs State of Kerala (Kerala High Court)
Kerala High Court reduced the penal liability under section 67 of the Kerala Value Added Tax Act instead of penalty equal to twice the tax allegedly sought to be evaded by the petitioner taking note of infringements of rule 66(6) of Kerala Value Added Tax Rules [i.e. carrying declaration in Form 8FA].
Facts- The petitioner partnership is a dealer in gold and diamond jewellery in Mumbai and registered as such under the Maharashtra Value Added Tax Act and the Central Sales Tax Act.
As part of promotion of its business and for the purposes of inspection and approval by customers in Thrissur, the Managing partner of the petitioner had along with his Manager carried a consignment of gold and diamond jewellery by air from Mumbai to Cochin on 13.08.20 16. On arrival at Cochin airport, the consignment was detained by the Authorities of the Commercial Tax Department, who found that the petitioner was not carrying the requisite declarations in Form 8FA as mandated by Rule 66(6) of the Kerala Value Added Tax Rules, 2005.
The petitioner was therefore served with a notice u/s. 47(6) of the Kerala Value Added Tax Act, proposing a penalty for attempted evasion of tax. Notably, the proceedings u/s. 47 of the Act were concluded in favour of the petitioner with the First Appellate Authority allowing his Appeal against the order of the Intelligence Officer that had imposed a penalty on him.
