Form E qualifies as a declaration for sales tax penalty purposes, and a false voucher also supports liability.

Form E filed with the A-2 return was treated as a declaration or document within section 7-A(2) because Rule 19-A requires it to accompany the return and set out the particulars on which exemption is claimed. On that construction, a dealer who knowingly uses a false Form E to support a claim of non-taxability or reduced tax liability can attract penalty under the Andhra Pradesh General Sales Tax Act, 1957. The record also disclosed a false voucher in support of the claim, providing an additional basis for penalty. The penalty was therefore upheld.

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Issues: Whether form E filed with A-2 return constituted a declaration or document within section 7-A(2) so as to sustain penalty for knowingly making a false claim of exemption, and whether penalty could still be upheld on the basis of a false voucher.

Analysis: Section 7-A(2) of the Andhra Pradesh General Sales Tax Act, 1957 penalises a dealer who knowingly issues or produces a false bill, voucher, declaration, certificate or other document to support a claim that a sale or purchase is not taxable or is taxable at a reduced rate. Rule 19-A of the A.P. General Sales Tax Rules, 1957 requires form E to be filed with the return and to contain particulars of purchases or sales on which exemption is claimed. On that scheme, form E, together with the signed statement accompanying it, is a prescribed document forming the basis of the exemption claim and falls within the expression declaration for purposes of section 7-A(2). Even apart from that, the record showed a false voucher in support of the claim.

Conclusion: Form E could be treated as a declaration or document under section 7-A(2), and the penalty was validly levied.

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