2019 (7) TMI 1241

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..... H,J. 1. The present revision has been filed by the assessee against the order of the Trade Tax Tribunal, Meerut dated 2.7.2008 passed in second appeal no. 161 of 2003 for the A.Y. 2000-01 (U.P.) (penalty under Section 15A(1)(o) of the U.P. Trade Tax Act, 1948). The Tribunal has sustained the penalty imposed on the assessee at the maximum rate of 40% of the value of the goods - namely, 25 bags of .....

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..... was discovered that though the assessee had disclosed import of 67 bags of laminated P.P. fabric, actually, the consignment was in two parts being 42 bags of laminated P.P. fabric and 25 bags of unlaminated P.P. fabric. Treating 25 bags of unlaminated P.P. fabric to be undisclosed with intention to evade tax, the same was seized and later released. The assessing authority imposed penalty @ 40% of .....

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..... e fact that there was no discrepancy in the total quantities of the goods, mere clerical error in not offering bifurcation of the two qualities of the P.P. fabric (i.e. unlaminated and laminated), did not establish any intention to evade tax by the assessee. In any case, the imposition of maximum penalty is wholly excessive and arbitrary inasmuch as it cannot be disputed by the revenue that though .....

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..... clear intent to evade payment of tax was established and, therefore, the maximum penalty is wholly justified. 10. Having heard learned counsel for the parties and having perused the record, it remains an undisputed fact that the assessee had disclosed import of 67 bags of P.P. fabric. It is not the case of the revenue that 25 bags of unlaminated P.P. fabric were found over and above the consignme .....

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..... posited in excess, may be refunded to the assessee. 12. In view of the above, the question of law no. 1 (framed above) is answered in the affirmative i.e. against the assessee and in favour of the revenue and; the question of law no. 2 (framed above) is answered in affirmative i.e. in favour of the assessee and against the revenue. 13. Accordingly, the present revision is partly allowed.
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