2016 (3) TMI 2 - HC - VAT and Sales Tax

Demand of VAT with interest and penalty - evasion of tax - sale and purchase of the Iron Goods (MS Bar) - Punjab Value Added Tax Act, 2005 - Tribunal vide order dated 13.8.2015 (Annexure P-6) dismissed the appeal holding that the goods were actually purchased from M/s Satpal Manku Steel Industries without any invoice to evade tax. A false invoice had been shown regarding the transaction by sister concern whereas the goods were purchased from M/s Satpal Manku Steel Industries without any payment of tax and without invoice. - All the authorities have concurrently recorded that there was an attempt to evade the tax. - Decided against the appellant.

Summary

Issues:
- Delay in refiling the appeal
- Appeal filed under Section 68 of the Punjab Value Added Tax Act, 2005
- Substantial questions of law raised by the appellant
- Detention of goods by Excise and Taxation Officer
- Imposition of penalty under Section 51(7)(b) of the Act
- Appeal process and orders by different authorities
- Allegations of tax evasion and false invoicing
- Failure to produce documents before authorities
- Attempt to evade tax
- Application for condonation of delay in filing the appeal

Delay in Refiling the Appeal:
The High Court condoned the delay of 26 days in refiling the appeal.

Appeal Under Section 68 of the Punjab Value Added Tax Act, 2005:
The appellant filed an appeal under Section 68 of the Act against the order passed by the Value Added Tax Tribunal, Punjab, raising substantial questions of law.

Detention of Goods and Imposition of Penalty:
The detaining officer detained the goods based on the driver's statement, leading to the imposition of a penalty under Section 51(7)(b) of the Act. The appellant failed to produce relevant documents before the authorities during the detention process.

Allegations of Tax Evasion and False Invoicing:
The Tribunal concluded that there was an attempt to evade tax as the goods were purchased without invoices from a different entity to avoid tax. The appellant's attempt to manipulate documents to show a legitimate transaction was noted.

Failure to Produce Documents and Attempt to Evade Tax:
The appellant's failure to provide necessary documents and the presence of sufficient evidence indicating an attempt to evade tax led to the dismissal of the appeal. The judgment in a similar case was deemed inapplicable due to clear evidence of tax evasion.

Condonation of Delay in Filing the Appeal:
An application for condonation of 14 days' delay in filing the appeal was disposed of as the appeal was dismissed on its merits.

In summary, the judgment addressed issues related to the delay in refiling the appeal, allegations of tax evasion, imposition of penalties under the Act, failure to produce essential documents, and attempts to evade tax. The Tribunal's findings of tax evasion based on false invoicing were upheld, leading to the dismissal of the appeal.