Transit pass clerical error did not justify penalty where goods matched the transport records and moved outside the State.

Penalty under section 15-A(1)(o) of the U.P. Sales Tax Act, 1948 was held not to arise where goods were actually being transported outside the State on a transit pass, despite a mistaken description in some bilitis. The mismatch in description was treated as a clerical error, and the transit pass form did not require a declaration on whether the goods were taxable or exempt. As the record did not show that the goods found at the check-post differed from those covered by the bilitis, the movement of goods through the State did not attract the penal provision, and 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 was sustainable where the transit pass contained a mistaken description of goods, although the goods were actually being transported outside the State.

Analysis: The goods were covered by biltis and moved through the State on a transit pass. The mismatch in the description of goods in respect of some biltis was treated as a clerical mistake. The transit pass form did not require a declaration whether the goods were taxable or exempt, and the record did not show that the goods found at the check-post differed from those mentioned in the biltis. In these circumstances, the movement of goods through the State did not attract the penal provision.

Conclusion: Section 15-A(1)(o) could not be invoked, and the penalty was not sustainable.

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