Penalty for alleged tax evasion deleted where Form XXXI was produced before seizure and no intent to evade was shown.

Penalty under section 15A(1)(o) of the U.P. Trade Tax Act was held unjustified where form XXXI, issued for the railway contract, was produced immediately before seizure and the goods were later released on security. The record did not support the finding of an intention to evade tax, because the form had been duly filled and furnished before seizure. On these facts, the penalty was deleted.

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Issues: Whether penalty under section 15A(1)(o) of the U.P. Trade Tax Act was justified when form XXXI was produced immediately before seizure and the goods were released on furnishing security.

Analysis: The revision arose from penalty proceedings under the U.P. Trade Tax Act. The material on record showed that form XXXI, issued in connection with the railway contract, was produced immediately before seizure of the goods and that the goods were released thereafter. The finding of the authorities below that there was an intention to evade tax was not supported by the record, particularly when the relevant form had been duly filled and produced by the railway before the seizure and the goods were subsequently released on security.

Conclusion: The penalty under section 15A(1)(o) of the U.P. Trade Tax Act was not justified and was liable to be deleted.

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