Penalty for transport documentation breach unsustainable where valid forms supported movement and no tax evasion was shown.

Penalty under section 15(1)(o) of the U.P. Trade Tax Act was found unsustainable where the assessee carried the goods with valid transport forms and the record showed no intention to evade tax. Form No. 34 for transit through Uttar Pradesh and Form No. 31 for inward movement supported the transportation, and the invoice cuttings did not displace the concurrent finding of no violation of section 28-A. On those facts, no substantial question of law arose in revision.

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Issues: Whether penalty under section 15(1)(o) of the U.P. Trade Tax Act, 1948 was sustainable for alleged violation of section 28-A when the assessee was carrying the goods with valid transport forms and there was no intention to evade tax.

Analysis: The assessee had produced form No. 34 at the time of inspection for transportation of goods through Uttar Pradesh and also had form No. 31 for the inward movement into the State. On the facts found by the appellate authority and the Tribunal, the movement of goods was supported by the required documents and no material showed an attempt to evade tax. The existence of cuttings in the invoice did not displace the concurrent factual finding that there was no violation of section 28-A warranting penalty. In such circumstances, no substantial question of law arose in revision.

Conclusion: The penalty was not sustainable and the revision failed.

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