Kerala HC deletes Penalty under KVAT Act as Goods Transported was for Own

In a recent ruling, the Kerala High Court annulled a penalty imposed under the Kerala Value Added Tax (KVAT) Act. The case involved the transportation of goods by a dealer, which was contested as non-compliant with tax regulations. The court found that the goods were being transported for the dealer's own use, not for sale, thereby exempting them from the penalty. The ruling underscores that penalties under KVAT should not apply when goods are used internally rather than in commercial transactions.