2006 (6) TMI 495 - AT - VAT and Sales Tax

Summary

Issues: Application under section 8 of the West Bengal Taxation Tribunal Act, 1987 challenging the legality and propriety of seizure and penalty imposed by Commercial Tax Officer, Siliguri Range, and the revisional order confirming the penalty.

Analysis:
The judgment revolves around a case where a transporter was penalized for violating sections 68 and 72 of the West Bengal Sales Tax Act, 1994. The transporter, engaged by a company for stock transfer, failed to produce required declarations for goods meant for different destinations. The Commercial Tax Officer imposed a penalty of Rs. 2 lakhs for the violation. The transporter argued that it was not feasible to declare the destination due to multiple stops, but the tribunal found this explanation unacceptable. The tribunal emphasized that the declaration was necessary for each consignment, not the entire vehicle, and upheld the contravention of section 72. The purpose of the law is to prevent tax evasion, regardless of actual evasion. Post-interception conduct may affect the penalty amount, but compliance with legal requirements is crucial.

The tribunal acknowledged mitigating factors, such as the goods being for stock transfer and not sale, and West Bengal being a corridor. Although the transporter's explanation was rejected, the penalty amount was reduced from Rs. 2 lakhs to Rs. 1 lakh due to mitigating circumstances. The tribunal highlighted the seriousness of the violations, including the failure to carry declarations and voluntarily stop at check-posts. The judgment concluded by modifying the penalty amount and ordering a refund of Rs. 1 lakh if already paid by the transporter, within three months from the date of the order. The technical member agreed with the decision to reduce the penalty.