Marine Chemicals vs State of Kerala

C.N. Ramachandran Nair, J.—Heard counsel for the Petitioner and Government Pleader for the Respondents. The order under challenge is the penalty order confirmed by the Tribunal in second appeal. Transaction that led to penalty is transport of goods from outside the State to Kerala through parcel service without accounting goods at the border check post. Contention of counsel for the Petitioner is that goods at the time of verification in the parcel office was accompanied by proper bill and the fact that it was not declared at the border check post is only an omission on the part of the truck driver. However, Government Pleader submitted that after crossing the border check post the goods passed through internal check posts and nowhere the goods were declared. His further contention is that drivers of parcel service are familiar with the sales tax procedure and the theory of omission in their part is unacceptable. We are in agreement with the finding of the Tribunal and lower authorities that since goods were not accounted at the check post by production of documents, there is likelihood of evasion of tax. Consequently penalty is rightly levied and confirmed by the Tribunal. We therefore dismiss the Revision Petition. However, since counsel for the Petitioner submitted that huge addition is made in the turnover on account of levy of penalty, it is of course a matter to be contested by the Petitioner in the challenge against assessment.