2007 (11) TMI 580 - HC - VAT and Sales Tax

Imposition of penalty under section 15A(1)(o) of the U.P. Trade Tax Act - Held that - The order of the Tribunal suffers from no error of law and no question of law arises in this revision. The imposition of penalty in the present case under section 15A(1)(o) is fully justified. This revision is dismissed.

Summary

Issues:
Imposition of penalty under section 15A(1)(o) of the U.P. Trade Tax Act for the transaction of assessment year 1998-99.

Analysis:
The revisionist, an assessee, challenged the Tribunal's order confirming the penalty imposed under section 15A(1)(o) of the U.P. Trade Tax Act. The assessee contended that there was no intention to evade tax as they produced "form XXXI" subsequently. However, the Tribunal found discrepancies in the assessee's story, noting that the form was not produced at the proper time. The Tribunal concluded that the intention to evade tax was evident, justifying the penalty.

The Tribunal's decision was supported by the learned Standing Counsel, who cited a Supreme Court case emphasizing the importance of proper declaration forms accompanying goods to prevent tax evasion. The apex court held that incomplete declaration forms could indicate an intention to evade tax. Proper documentation is crucial to identify goods and transactions accurately, preventing revenue loss. The court agreed with this principle and found no error in the Tribunal's decision.

In the detailed analysis, the court examined the facts thoroughly and determined that the penalty imposed under section 15A(1)(o) was justified in this case. The court dismissed the revision, upholding the Tribunal's order. No costs were awarded in this matter.