Penalty for missing delivery note is not automatic when sufficient cause and no tax evasion are shown.

Non-production of a delivery note did not automatically attract penalty for transport of goods under the Karnataka Value Added Tax Act. Penalty depends on whether the omission is explained by sufficient cause and whether surrounding circumstances indicate an intention to evade tax. On the facts, the driver carried the sale bill, the consignee's name was disclosed, and the absence of the delivery note was explained as inadvertent. The levy of penalty was therefore not warranted, and the issue was answered in favour of the assessee and against the revenue.

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Issues: Whether non-production of the delivery note, by itself, necessarily attracted penalty for transportation of goods under section 53(2) of the Karnataka Value Added Tax Act, 2003.

Analysis: Section 53(2) requires carriage and production of prescribed documents at the check-post, but the imposition of penalty is not automatic in every case of non-production. The relevant inquiry is whether the explanation offered for the omission constitutes sufficient cause and whether the surrounding circumstances indicate an intention to evade tax. Here, the driver carried the sale bill, the consignee's name was shown therein, and the omission to carry the delivery note was explained as inadvertent.

Conclusion: Non-production of the delivery note did not, on the facts, warrant levy of penalty. The question was answered against the revenue and in favour of the assessee.

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