Expired transport declaration form did not justify penalty where accompanying documents fully disclosed the consignment and no tax evasion intent was shown.

Penalty could not be sustained where the transport declaration form had expired, because the accompanying delivery note and declaration still disclosed the full particulars of the consignment. Expiry of the form did not make it void ab initio, as it remained capable of validation by the competent officer. On the facts, the documents showed the transaction transparently and did not support any inference of intent to evade tax. The absence of mens rea to evade tax therefore defeated the penalty.

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Issues: Whether penalty could be sustained when the transport declaration form had expired, but the accompanying documents disclosed all particulars of the consignment and there was no intention to evade tax.

Analysis: The goods were accompanied by a delivery note and declaration form containing the relevant details of quantity and other particulars. Although the form had crossed its initial period of use, expiry did not render it non est, since such a form could be validated by the competent officer. On the facts, the documents accompanying the goods sufficiently disclosed the transaction, and the circumstances did not justify an inference of intent to evade or avoid tax.

Conclusion: The penalty was not sustainable, as absence of mens rea to evade tax was rightly inferred.

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