2006 (7) TMI 601 - HC - VAT and Sales Tax

Summary

Issues:
1. Penalty under section 13A(4) of the U.P. Trade Tax Act, 1948.
2. Assessment proceedings for the year 1996-97.

Penalty under section 13A(4) of the U.P. Trade Tax Act:
The case involved two revisions under section 11 of the U.P. Trade Tax Act, 1948, challenging the Tribunal's order related to the penalty under section 13A(4) of the Act for the assessment year 1996-97. The dealer, engaged in the business of manufacturing and selling cooler bodies, had disclosed a turnover which was later revised by the assessing authority. A penalty was levied based on discrepancies found in a bill during a verification process conducted by the Trade Tax Officer. The assessing authority issued a notice and levied a penalty under section 13A(4) of the Act. The penalty order was confirmed in the first appeal but set aside by the Tribunal in the second appeal.

Assessment Proceedings for the Year 1996-97:
The Tribunal accepted the dealer's explanation that the difference in the bill found with the goods and the carbon copy was due to the bill being issued from a different bill book maintained for labor charges. The Tribunal found that the goods were entered in the books of account and were not seized. The assessing authority's estimate of turnover was also challenged, but the Court held that penalty under section 13A(4) of the Act could only be levied if goods were seized under section 13A(1). Since the goods were not seized, the penalty proceedings under section 13A(3) could not be initiated. The Court dismissed both revisions, upholding the Tribunal's findings that the entries of the goods were duly recorded in the books of account, and no contrary material was presented to challenge this factual finding.

In conclusion, the Court dismissed the revisions, emphasizing that penalty under section 13A(4) could not be levied without goods being seized and accepting the Tribunal's findings regarding the entries in the books of account.