Penalty for non-production of transport form at check-post requires more than a procedural lapse; evasion intent must be shown.

Penalty for non-production of form XXXI at a check-post under the U.P. Sales Tax Act is not automatic. Section 28-A and Rule 83 require prescribed documents to accompany transport, but detention under section 28-A(6) depends on an attempt to evade tax. Read harmoniously with section 15-A(1)(o), temporary non-production of the form, by itself, is insufficient where the dealer proves that the form was obtained before transportation and offers a satisfactory explanation accepted on record. On those facts, the penalty was not sustainable.

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Issues: Whether penalty under section 15-A(1)(o) of the U.P. Sales Tax Act, 1948 could be imposed for non-production of form XXXI at the check-post without proof of mens rea or attempt to evade tax.

Analysis: The provisions governing import and transport of goods under section 28-A of the U.P. Sales Tax Act, 1948 and Rule 83 of the U.P. Sales Tax Rules, 1948 require the prescribed documents to be carried and produced. At the same time, section 28-A(6) makes detention dependent on a finding that the goods were being transported in an attempt to evade assessment or payment of tax. Reading section 15-A(1)(o) harmoniously with section 28-A, mere non-production of form XXXI at the moment of checking is not, by itself, enough in every case. Where the assessee shows that the form had been obtained before transportation and offers a satisfactory explanation for its temporary non-production at the check-post, and that explanation is accepted, penalty is not sustainable.

Conclusion: Penalty could not be sustained on the facts found, and the revision succeeded in favour of the assessee.

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