2009 (7) TMI 1177 - HC - VAT and Sales Tax

Summary

Issues involved: Appeal u/s 68(2) of Punjab Value Added Tax Act, 2005 challenging order of Value Added Tax Tribunal regarding mandatory issuance of notice to consignee of goods u/s 14B(7)(iii) of the Act.

Summary:
The High Court of Punjab and Haryana heard an appeal filed by the State of Punjab challenging an order passed by the Value Added Tax Tribunal. The Tribunal held that the issuance of notice to the consignee of the goods as per the amended provisions of section 14B(7)(iii) of the Act was mandatory. The Tribunal found that the order imposing penalty on the dealer-respondent was unsustainable due to non-compliance with the amended provision. Despite the driver not reporting the transaction at the ICC barrier, all other documents were complete and in possession of the driver. The Tribunal concluded that there was no attempt to evade or avoid tax in this case.

The High Court did not feel persuaded to interfere with the Tribunal's order. It was undisputed that the amendment requiring notice to the consignee became effective from July 15, 2002, and the goods were intercepted after this amendment on October 13, 2002. Since no notice was issued to the consignee as required by the amendment, the Tribunal correctly held that the penalty imposed was vitiated. The Tribunal also found that all other documents were complete and in the possession of the person in charge of the vehicle, indicating no intention to evade tax.

The Court found no merit in the appeal, stating that it did not raise any substantive question of law warranting its admission. The appeal was dismissed as wholly without merit. As the main appeal was dismissed on merit, the Court did not see the need to pass any order on the application seeking condonation of delay in filing the appeal.