Penalty for mere technical lapse fails where no attempt to evade tax is found and documents are later produced.

Penalty under Section 15-A(1)(o) is not sustainable where the only default is initial non-production of the bill and Form 31 at the check post, and both documents are produced shortly thereafter with endorsement by the check post officer. In the absence of any finding by the assessing authority that the goods were accompanied by an attempt to evade tax, a mere technical lapse does not justify penalty. The penalty was therefore held unwarranted and was set aside in favour of the assessee.

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Issues: Whether penalty under Section 15-A(1)(o) was sustainable when the bill and Form 31 were produced shortly after the initial check and no finding of attempt to evade tax was recorded.

Analysis: The penalty was founded only on the initial non-production of the bill and Form 31 at the check post, although both documents were subsequently produced and endorsed by the check post officer. No finding was recorded by the assessing authority that the import of goods was accompanied by any attempt to evade tax. Penalty under Section 15-A(1)(o) cannot be imposed for a mere technical default unless an attempt to evade tax is established.

Conclusion: The penalty was not justified and is set aside in favour of the assessee.

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