2007 (1) TMI 535 - HC - VAT and Sales Tax

Summary

Issues involved: Revision under section 11 of the U.P. Trade Tax Act, 1948 against the order of Tribunal dated March 18, 2000 relating to the assessment year 1997-98.

Details of the judgment:

Issue 1: Seizure of goods and levy of penalty under section 15A(1)(o) of the Act
The applicant, a registered dealer in edible oil, purchased goods from a supplier but failed to produce declaration form at a check-post, leading to seizure of goods and imposition of penalty under section 15A(1)(o) of the Act. The Tribunal upheld the penalty. The applicant contended that there was no attempt to evade tax, as the declaration form was inadvertently left with the seller. The High Court referred to precedents stating that penalty can only be imposed if there is an attempt to evade tax. The Court observed that no such attempt was made out in this case, as the goods were seized without establishing evasion. Consequently, the penalty was deemed unjustified and set aside.

Decision:
The High Court allowed the revision, setting aside the Tribunal's order and quashing the penalty under section 15A(1)(o) of the Act.