Penalty for missing transport documents requires a recorded finding of intent to evade tax before it can stand.

Penalty for transporting goods without the prescribed documents under the U.P. Trade Tax Act can be imposed only where the authority records a reasoned finding that the movement was an attempt to evade assessment or payment of tax. Mere absence of Form 31/32 is insufficient unless the statutory precondition of intent to evade is satisfied after recorded reasons and hearing. A penalty order that omits this finding fails the condition precedent for the penal provision. The penalty orders were therefore set aside and the deposited penalty amount directed to be refunded.

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Issues: Whether penalty under Section 15-A(1)(o) of the U.P. Trade Tax Act could be imposed in the absence of a recorded finding that the goods were transported in an attempt to evade assessment or payment of tax.

Analysis: Penalty for violation of the document requirement under the Act is linked to Section 28-A(6), which authorises detention only where the authority, for recorded reasons and after hearing the person concerned, is satisfied that the goods were being transported in an attempt to evade assessment or payment of tax due or likely to be due. A penalty order based merely on transportation without Form 31/32, without a finding on the statutory element of intent to evade tax, does not satisfy the condition precedent for invoking the penal provision.

Conclusion: The penalty could not be sustained because no authority recorded the requisite finding of an attempt to evade tax.

Final Conclusion: The penalty orders were set aside and the amount deposited towards penalty was directed to be refunded.

Ratio Decidendi: A penalty provision linked to transport of goods without proper documents can be invoked only when the authority records a reasoned finding, as required by the statute, that the goods were being transported in an attempt to evade assessment or payment of tax.

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