Mere alleged connection with recovered liquor is insufficient to invoke sales tax penalty provisions without supporting evidence.

Section 15-A(1)(o) of the U.P. Sales Tax Act, 1948 was held inapplicable where the record showed only unverified information linking the assessee to recovered liquor, without proof of possession of the premises or the liquor. The revenue had not established the source or reliability of the excise information, and the assessing authority acted mechanically without collecting relevant material before making an ex parte assessment and imposing penalty. Mere alleged connection or possession was insufficient to invoke the provision, so the remand was unjustified and the assessment and penalty orders could not be sustained.

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Issues: Whether the remand of the assessment and penalty proceedings was justified in the absence of material evidence connecting the assessee with the recovered liquor, and whether section 15-A(1)(o) of the U.P. Sales Tax Act, 1948 could be invoked on the basis of mere alleged connection or possession.

Analysis: The record disclosed only an unverified information that the assessee had some connection with the liquor recovered by the Excise Department. There was no evidence that the assessee was in possession of the premises or of the liquor, and the revenue had not established the basis of the excise information or the investigation said to have been conducted. The assessing authority had proceeded mechanically without collecting relevant material before making the ex parte assessment and before levying penalty. Section 15-A(1)(o) applies to import, transport, attempted import or transport, or abetment thereof in contravention of section 28-A, and does not cover mere possession.

Conclusion: The remand was unjustified, section 15-A(1)(o) was not attracted on the facts, and the assessment and penalty orders could not be sustained.

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