Bona fide trade tax records defeat penalty when consignments are duly accounted for and supported by original documents.

Penalty under section 13-A(4) of the U.P. Trade Tax Act was unsustainable where a registered dealer's medicine consignments were supported by supply orders, invoices, stock entries and the purchasing department's records. The authorities relied on discrepancies in billing and despatch timing and the existence of multiple bills, but the records showed genuine, bona fide transactions that were duly accounted for. Mere minor or technical objections could not justify penalty when there was no material suppression or omission. The penalty order was therefore illegal and without jurisdiction.

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Issues: Whether penalty under section 13-A(4) of the U.P. Trade Tax Act was sustainable on the facts of the consignment being accompanied by documents, recorded in the dealer's books, and supported by the purchasing department's records.

Analysis: The petitioner was a registered dealer supplying medicines only to a Government department and the transactions were supported by supply orders, invoices, stock entries, and the purchasing office's records. The discrepancy relied upon by the authorities related to the timing of billing and despatch and the preparation of multiple bills, but the evidence showed that the consignments were genuine and traceable to bona fide transactions. Penalty under section 13-A(4) could not be imposed on mere minor or technical objections when the goods were properly accounted for and the explanation was verified from the original records.

Conclusion: The penalty was not justified and the order imposing penalty was illegal and without jurisdiction.

Ratio Decidendi: Penalty under section 13-A(4) is not exigible where the dealer is bona fide and the transaction is duly supported by account books and accompanying documents, with no material suppression or omission.

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