Penalty for missing transport form requires proof of tax evasion, not a mere technical breach

Penalty under Section 15-A(1)(o) of the U.P. Sales Tax Act was held to depend on proof of an intention to evade tax. Where the vehicle was stopped at the check post, the driver furnished the prescribed particulars, and the bill and excise gate pass were produced, the omission to produce Form 31 was treated as a technical lapse only. On those facts, the non-production of Form 31 did not by itself establish evasion, and penalty was not leviable; the Tribunal's order was set aside in favour of the assessee.

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Issues: Whether penalty under Section 15-A(1)(o) of the U.P. Sales Tax Act was leviable when the vehicle was stopped at the check post, the driver filled the prescribed form, and the accompanying bill and gate pass were produced, but Form 31 was not produced.

Analysis: The liability to penalty under Section 15-A(1)(o) depended on proof of an intention to evade payment of tax. The facts showed that the driver himself stopped at the check post, furnished full particulars of the consignment in the prescribed form, and produced the bill and excise gate pass. On these facts, the omission to produce Form 31 was treated as a mere technical lapse and not as conduct showing an intention to evade tax. The earlier view requiring establishment of intention to evade before imposing penalty was followed.

Conclusion: Penalty under Section 15-A(1)(o) was not leviable and the order of the Tribunal was set aside in favour of the assessee.

Ratio Decidendi: Penalty for non-production of statutory transport documents cannot be sustained unless an intention to evade tax is established; a technical breach, without such intention, does not attract Section 15-A(1)(o).

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