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2019 (5) TMI 650 - HC - VAT and Sales TaxImposition of tax under Section 7(4) of U.P. Trade Tax Act - imposition of penalty under Section 15A( 1)(q) of the Act - cancellation/surrender of Transit pass at exist check post not done - HELD THAT - The fact reveals that the first appeal were filed on 30.12.1999 by the applicant, against the orders of the assessment and penalty dated 14.1.1999 and 31.1.1997. Admittedly no application under Section 12B or the certificate allegedly issued by the buyer dated 24.3.2000 was filed by the applicant before the first appellate authority. The first appeal was decided on 1.2.2001 i.e. much after the date of preparation of the alleged certificate dated 24.3.2000. The contents of para 6 of the grounds of appeal therefore are not supporting the claim of the applicant. The first appeal was decided after issuance of the certificate and admittedly the alleged certificate was not filed before the first appellate authority. Revision dismissed.
Issues:
1. Imposition of tax under Section 7(4) of the U.P. Trade Tax Act. 2. Imposition of penalty under Section 15A(1)(q) of the U.P. Trade Tax Act. Analysis: Issue 1: Imposition of tax under Section 7(4) of the U.P. Trade Tax Act The case involved two Trade Tax Revisions filed by M/S East India Transport Agency regarding the imposition of tax under Section 7(4) of the Act. The applicant, a transport company registered in Kolkatta, was transporting goods from Rajasthan to West Bengal. The goods were loaded in a truck for transportation, and a transit pass was issued at a check post. However, the transit pass was not surrendered at the exit check post due to a mistake by the driver. Consequently, the assessing authority imposed tax and penalty on the applicant. Appeals were filed, but the first appellate authority confirmed the orders. The Tribunal also dismissed the second appeals filed by the applicant. The applicant claimed that the goods were delivered to the buyer in West Bengal, supported by a certificate from the buyer. However, the Tribunal rejected the application under Section 12B for additional evidence, stating that the certificate was not filed before the first appellate authority. The High Court found no error in the orders passed by the authorities and the Tribunal, dismissing both revision petitions. Issue 2: Imposition of penalty under Section 15A(1)(q) of the U.P. Trade Tax Act In addition to the tax liability, a penalty was imposed under Section 15A(1)(q) of the Act on the applicant. The penalty proceedings were initiated as the transit pass was not surrendered at the exit check post. The applicant argued that the penalty was unjust as the goods were delivered to the buyer in West Bengal. The first appellate authority and the Tribunal upheld the penalty. The applicant tried to submit a certificate from the buyer as additional evidence, but it was rejected by the Tribunal for not being filed before the first appellate authority. The High Court, after considering the facts and reasons given by the lower authorities and the Tribunal, found no legal error in the penalty imposition. Consequently, both revision petitions were dismissed. This detailed analysis outlines the legal proceedings and decisions related to the imposition of tax and penalty under the U.P. Trade Tax Act, emphasizing the importance of timely submission of evidence and adherence to procedural requirements in legal matters.
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