9911796707
TMI Blog2008 (6) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... r the consignment reached its factory at Serampore, the petitioners themselves produced the way-bill along with other relevant documents before the Sales Tax Officer, Alipur under whose jurisdiction the head office of the petitioner-company is situated on October 20, 2006 for endorsement but the Sales Tax Officer, Alipur advised the petitioners to produce the said way-bill along with other required documents in the Kharagpur Range Office. As October 21 and 22, 2006 were holidays on account of Kalipuja and Sunday, respectively, the petitioner produced the way-bill and other documents before the Sales Tax Officer, Kharagpur Range on October 23, 2006. The Sales Tax Officer did not endorse the way-bill on the ground that it was not produced before or at the time of taking delivery of the consignment and instead issued notice in form 62 initiating a penalty proceeding and asking the petitioner to show cause why penalty would not be imposed. The petitioner-dealer duly appeared before the Sales Tax Officer and pleaded that the way-bill was not produced for endorsement at the time of taking delivery as the original invoice and other relevant documents did not reach the petitioner on tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was neither any intention nor any possibility of evasion of tax in the present case. He has submitted that the Revenue authorities ignored a series of decisions by this Tribunal that mere contravention of the required provision cannot automatically lead to imposition of penalty unless it is found that there was possibility of evasion of tax. He has contended that the officers failed to appreciate the true import of the decision of this Tribunal rendered on June 8, 2007 in Century Cement v. Assistant Commissioner of Commercial Taxes, Kharagpur [2009] 26 VST 463 (WBTT) (RN-149 of 2007). Mr. Ghosh has also placed the decision of this Tribunal in Cal-Cox Syndicate Pvt. Ltd. v. A.C.C.T., Kharagpur Range [2009] 19 VST 108 (WBTT); [2008] 51 STA 122 in which the Supreme Court's decision in Guljag Industries [2007] 9 VST 1 has been explained and law relating to imposition of penalty for contravention of procedural requirement has been re-stated. (1)Reported as Century Cement v. Assistant Commissioner of Commercial Taxes [2009] 26 VST 463 (WBTT). Mr. Banerjee, learned State Representative, has submitted that there could not be any good and valid reason for not complying with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge 466): . . . It has been repeatedly pointed out that mere infringement will not invite imposition of penalty unless it is found that such infringe(1)Since reported in [2009] 26 VST 467. ment is intentional or actuated by the motive of evading payment of due tax or created a possibility of evasion of tax. In the present case all related documents clearly indicate that the consignment was sent along with the required way-bill and other documents. There is no allegation that the way-bill was subsequently procured after obtaining delivery of the goods. The documents produced by the petitioner and annexed to this application leave no doubt that there was no lack of bona fide and no intention or possibility of evasion of tax. Respondent No. 1 has acted mechanically and without taking a comprehensive view of the documents produced by the petitioner in imposing impugned penalty. We do not find any reason or justification for imposition of penalty. According to us the imposition of penalty in the facts and circumstances of this case is absolutely unwarranted and contrary to the purpose for which the provisions for penalty have been enacted. All those circumstances excepting the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be exercised in a rational and fair manner. Rules framed for achieving the purpose of section 68 require production of several types of documents at the entry or exit check-post. For example, an importer or its transporter may have all the required documents excepting way-bill. If the said importer or transporter voluntarily stops at the entry check-post, himself/itself produces all the documents excepting the way-bill, discloses all the material particulars regarding the imported consignment enabling recording of the import, absence of way-bill, though an infringement, cannot have any adverse impact on the revenue of the State. If prescribed penalty, which is quite heavy, is imposed for the infringement of non-production of way-bill in such cases it will be an unreasonable and unfair exercise of the power. In our view consequence of the infringement is to be adjudicated before imposing penalty for such infringement. As already pointed out, onus to show that infringement is inconsequential and does not create any possibility of evasion of tax, is on the defaulting party. Under our constitutional scheme there is no room for mechanical and unreasonable exercise of power. Any kind of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 463 (WBTT) but proceeded on the view that facts in Ultra-Tech Cement Ltd. [2009] 26 VST 467 (WBTT) were dissimilar to those in Century Cement [2009] 26 VST 463 (WBTT). In the present case there is no allegation that the description or value of the goods indicated in the documents were not correct or that the authorities wanted to undertake any such exercise but could not do so because of non-availability of the imported goods. The judgment in Ultra-Tech Cement [2009] 26 VST 467 (WBTT) has not laid down any law contrary to those laid down in Century Cement [2009] 26 VST 463 (WBTT). We are constrained to issue a note of caution to the Revenue officials who are entrusted with the quasi-judicial function of adjudicating disputes that they are bound to follow the law laid down by this Tribunal so long as those are not inconsistent with any decision of the Supreme Court or the Division Bench of the High Court of this State. Where any decision of the Supreme Court or High Court has been expressly considered and explained by this Tribunal, officers cannot ignore such decision of the Tribunal by referring to the explained judgments. Law laid down in judgments of this Tribunal has bi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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