- (1.) The petitioner, Coal India Ltd., is a Central Government undertaking and fully owned by the Government of India. In course of its business the petitioner purchased 635 kgs. of coal cutting machinery from a company in United Kingdom for their use in Western Coal Fields Ltd., a subsidiary company of the petitioner in Madhya Pradesh. Said consignment of coal cutting machinery was imported through air at Netaji Subhas Chandra Bose International Airport for sending the same to Madhya Pradesh using West Bengal as corridor. After clearance of the consignment at Kolkata airport the petitioner-company obtained transit declaration (T. D.) No. 163 dated May 2, 2008 declaring that the goods would go out of West Bengal within 21 days, that there might be trans-shipment of the goods at 88 Pathuria Ghat Street, Kolkata and that the vehicle carrying the said consignment would exit through Chichira check-post.
(2.) As no transit declaration was produced at the exit check-post for endorsement within a period of 21 days and no exit confirmation was received, the Sales Tax Officer, Central Section (respondent No. 1) issued a notice in form 62 under rule 127 of the West Bengal Value Added Tax Rules, 2005 (in short, "the VAT Rules") why penalty should not be imposed on it.
(3.) At the time of hearing of the penalty proceeding the petitioner's authorised representative appeared and produced one letter from the Coal India's Kolkata office stating that the consignment duly reached delivery site in Madhya Pradesh and was delivered there, xerox copies of a signed challan and consignment note to support the said claim of delivery.;