2011 (8) TMI 1266 - HC - VAT and Sales Tax

Summary

Issues involved:
The judgment involves the quashing of FIR under Sections 420 IPC and subsequent proceedings based on the petitioner's alleged theft of revenue and cheating by transporting goods without proper documentation.

Quashing of FIR under Section 482 of CrPC:
The petitioner filed a petition seeking the quashing of FIR No. 41 dated 20.3.2010 under Sections 420 IPC registered at Police Station Khuian Sarwar, District Ferozepur, and all subsequent proceedings arising from it. The petitioner was accused of committing theft of revenue and cheating by transporting goods without proper documentation.

Proceedings under Punjab Value Added Tax Act:
Proceedings were initiated against the petitioner under Section 51(7)(C) of the Punjab Value Added Tax Act, 2005 for transporting goods without proper documentation. A penalty of Rs. 93,000 was imposed on the petitioner under this section, along with a VAT amount of Rs. 11,491. The petitioner deposited the required amount, leading to the release of the vehicle and goods.

Decision and Ruling:
After considering the arguments from both sides, the court found that the petitioner had complied with the penalties imposed under the Act, and the vehicle in question was released. The court deemed the continuation of criminal proceedings against the petitioner as an abuse of process of law. Consequently, the petition was allowed, and FIR No. 41 dated 20.3.2010 under Sections 420 IPC and all subsequent proceedings were quashed.