2009 (5) TMI 893 - HC - VAT and Sales Tax

Summary

Issues involved:
- Interpretation of section 14B of the Punjab General Sales Tax Act, 1948 for imposition of penalty
- Determination of evasion of tax in the case of sending goods to a different state for job-work

Analysis:
The judgment of the court was delivered by M.M. Kumar J. The dealer-petitioner filed a petition under section 22(2) of the Punjab General Sales Tax Act, 1948, seeking direction to the Punjab VAT Tribunal to refer questions of law arising from its order dated August 11, 2003. The petitioner, engaged in the business of purchase and sale of jute/HDPE bardana, faced detention of goods and imposition of a penalty for alleged tax evasion. The appellate authority dismissed the appeal, reducing the penalty to Rs. 55,000. Subsequent appeals were also dismissed, leading the petitioner to file the instant petition.

The dealer-petitioner sought clarification on two key questions during the proceedings. Firstly, whether there was an attempt to evade tax, a mandatory requirement for imposing a penalty under section 14B of the PGST Act. Secondly, whether sending goods to a different state for job-work constituted an offense. The court, after hearing arguments and reviewing the case details, found that there was no determination by revenue authorities regarding the obligation to pay sales tax. As a result, the court concluded that the questions of evasion and offense needed further examination.

Consequently, the court directed the Tribunal to refer the two questions of law for the court's opinion after compiling a statement of facts and attaching all relevant orders. The court emphasized the need for the paper book to be computer printed in accordance with legal provisions. The instant petition was disposed of based on the above findings and directives issued by the court.