IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 16620 of 2003(C)
1. POLAKULATH TOURIST HOME,
... Petitioner
Vs
1. THE INTELLIGENCE OFFICER,
... Respondent
2. THE DEPUTY COMMSSIONER,
3. THE COMMISSIONER,
For Petitioner :SMT.S.K.DEVI
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :22/07/2008
O R D E R
C.N.RAMACHANDRAN NAIR, J.
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W.P.(C) No.16620 of 2003
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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