Form 31 with full transit documents defeated inference of tax evasion and made seizure and penalty unsustainable.

A crane moved under a hire arrangement with the hirer acting as importer for its own use, and the accompanying consignment note, builty, insurance cover note and form 31 were produced at the check-post. On these facts, the movement was traceable and not concealed, and form 31 was treated only as notice to the department rather than proof of ownership or the exact nature of the transaction. The use of form 31 by the hirer was therefore not contrary to section 28-A of the U.P. Sales Tax Act, and no attempt to evade tax could be inferred. The seizure and penalty were consequently unsustainable, including penalty under section 15-A(1)(o).

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Issues: Whether penalty and seizure were justified when the crane was transported under form 31 issued by the hirer, along with the other accompanying documents, and whether the material disclosed any attempt to evade tax so as to attract penalty under section 15-A(1)(o).

Analysis: The movement of the crane was in pursuance of a hire arrangement and the hirer was the importer for its own use. The accompanying documents, including the consignment note, builty, insurance cover note and form 31, were produced at the check-post, so the transaction was traceable and not concealed. Form 31 is meant to bring the import to the notice of the department and does not by itself determine ownership or the exact nature of the transaction. On these facts, the use of form 31 by the hirer was not contrary to section 28-A of the U.P. Sales Tax Act, and no inference of an attempt to evade tax could be drawn.

Conclusion: The seizure and penalty were unsustainable, and the penalty under section 15-A(1)(o) could not be imposed.

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