Documentary support for goods transit under VAT laws can justify penalty where papers are missing and later explanation is doubtful.

Transport of goods under the Punjab Value Added Tax regime must be supported by genuine sale and delivery documents at the time of interception; where the driver cannot produce them and no plausible explanation is given, an inference of intent to evade tax may be drawn. The High Court treated the Tribunal's findings that the papers were later produced and appeared to have been prepared after detention as findings of fact, and held that no substantial question of law arose for interference in appeal. On that basis, the penalty was upheld.

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Issues: Whether penalty imposed for transporting goods without proper and genuine documents under the Punjab Value Added Tax Act was sustainable and whether any substantial question of law arose for interference in appeal.

Analysis: The goods were intercepted during transit and the driver could not produce the relevant sale bills or delivery documents. The authorities recorded concurrent findings that no plausible explanation was offered for the absence of documents at the time of checking, and the later production of papers was treated as doubtful. The record also supported the view that the transaction was initially shown as stock transfer and that the entries and supporting documents could have been prepared after detention to create a defence. In such circumstances, the Tribunal's findings were held to be findings of fact, and the court held that no substantial question of law arose. The court further held that transportation of goods must be accompanied by the required documents and that, in their absence and without a plausible explanation, an inference of intention to evade tax was permissible.

Conclusion: The penalty was upheld and the appeal was rejected.

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