9911796707
TMI Blog2007 (7) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. 2 of 2007 - - - Dated:- 16-7-2007 - KUMAR M.M. AND AJAY KUMAR MITTAL , JJ. The judgment of the court was delivered by M.M. KUMAR J. This appeal filed under section 68(1) of the Punjab Value Added Tax Act, 2005 (for brevity, the Act ), is directed against order dated November 14, 2006/November 28, 2006, passed by the Value Added Tax Tribunal (Punjab) (for brevity, the Tribunal ), in Appeal No. 35 of 2006-07 (VAT). The appellant is a registered dealer under the Act, engaged in the business of sale and purchase of various goods including electrical and motor parts. It holds RC No. 0318114775 with the assessing authority, Patiala, with its head office at Manimajra. It is claimed that the appellant has its branches at Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and that the documents produced later on after detection could not be considered. Accordingly, the penalty imposed by the Assistant Excise and Taxation Commissioner, vide his order dated August 12, 2005, was upheld and the appeal of the appellant was dismissed on January 31, 2006 (P10). On further appeal to the Tribunal, the view taken by the Assistant Excise and Taxation Commissioner was upheld by observing as under: From the record, it is quite evident that the vehicle of the appellant-company carrying taxable goods was intercepted while leaving the limit of Punjab State at the exit point of Zirakpur. At that time on enquiry, the driver of the vehicle could not produce the relevant documents covering the goods. The subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers were placed by the so-called dealers with the appellant-company for those goods. The subsequent reflection of the transaction in its own books of account by the company, is a simple creation of evidence in its own favour and as such in the eyes of law does not carry any evidential value. Mr. Ramneek Vasudeva, learned counsel for the appellant has submitted that the following substantial question of law would arise for our determination: Whether penalty under section 51(7) of the Punjab Value Added Tax Act, 2005 was rightly imposed on facts and in the circumstances of the case? According to the learned counsel, the penalty under the provisions of section 51(7) of the Act cannot be considered automatic and the dealer is required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant from Manimajra to Zirakpur by showing the same as stock transfer, which were brought back for delivery to the courier for onward transmission to various dealers within the State of Punjab. The Tribunal has held that it was prima facie inter-State sale. Even at the first stage, it was camouflage as stock transfer to avoid tax. It was after learning about the detention of the goods that entries in the ledger and preparation of relevant documents could be manipulated by the appellant because nothing was placed on record to prove if any orders were placed with the appellant by the so-called dealers for supply of those goods. It is on the basis of the aforementioned premise that the Tribunal has concluded that entries by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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