JUDGMENT

SHIVA KIRTI SINGH, J.

1. The Commissioner of Commercial Taxes, Thiruvananthapuram, Kerala has preferred this appeal against judgment and order dated 20.3.2006 passed by the High Court of Kerala in MFA No. 1000 of 2002. The High Court exercising an appellate power allowed the appeal filed by M/s K.T.C. Automobiles, the respondent herein and set aside the original order passed by the Intelligence Officer under Section 45A of the Kerala General Sales Tax Act (for brevity ‘KGST Act’) imposing a penalty of Rs.86 lakhs upon the respondent dealer for the alleged non-maintenance of complete and true accounts during the period 1.4.1999 to 31.3.2000. The High Court also set aside the suo-motu order of Commissioner of Commercial Taxes dated 12.8.2002 passed under section 37 of the KGST Act whereby the Commissioner had set aside appellate order of the Deputy Commissioner dated 8.1.2002 and had restored the order of the Intelligence Officer.

2. The undisputed facts disclose that the respondent is in the business of purchase and sale of Hyundai cars manufactured by Hyundai Motors Limited, Chennai. As a dealer of said cars, both at Kozhikode (Calicut), Kerala where their head office is lo