COMMISSIONER OF COM.TAXES, TVM vs M/S. KTC AUTOMOBILES

The Supreme Court upheld the High Court's decision to set aside the penalty imposed under Section 45A of the Kerala General Sales Tax Act (KGST Act) on M/s K.T.C. Automobiles for alleged non-maintenance of accounts. The Court found that the respondent had maintained true accounts and that the penalty of Rs.86 lakhs was unjustified. The Court emphasized the importance of proper assessment procedures under the KGST Act, affirming the High Court's ruling that the Commissioner of Commercial Taxes had overstepped his authority under Section 37 of the KGST Act.