2012 (10) TMI 299 - HC - VAT and Sales Tax

Punjab's VAT Tribunal Appeal Dismissed

State of Punjab and another Versus M/s ABB Limited

State of Punjab and another Versus M/s ABB Limited - TMI, [2013] 58 VST 71 (P&H) Issues:1. Appeal against the order passed by the Value Added Tax Tribunal, Punjab.2. Detention of goods vehicles for further verification.3. Imposition of penalty under Section 51(7)(b) of the Act.4. Appeal filed before the Tribunal.5. Tribunal's findings and conclusion.Analysis:1. The State of Punjab appealed against the order of the Value Added Tax Tribunal, Punjab, which allowed the respondent's appeal against the order passed by the Deputy Excise and Taxation Commissioner-cum-Joint Director. The Tribunal concluded that there was no error on the part of the respondent-dealer, as full sales tax on the interstate sale had been paid, and there was no element of tax in Punjab State involved. The Tribunal noted voluntary reporting at the Information Collection Centre (ICC) and genuine documents accompanied the goods, with payments made through banking channels. The Tribunal found no attempt to evade tax and dismissed the appeal by the State of Punjab.2. Two goods vehicles loaded with electrical goods were detained at the ICC of Dhabi Gujran, Patiala, as they were being imported by an unregistered dealer of Punjab for trade. The goods and vehicles were detained for further verification after discrepancies were found in the documents. Despite appearances by representatives, the genuineness of the documents could not be proven. A penalty of Rs. 16,23,587/- was imposed under Section 51(7)(b) of the Act against the respondent. The Tribunal found that the documents were genuine, and the goods were meant for self-consumption in a project at Ludhiana, leading to the conclusion that no tax evasion was attempted.3. The penalty imposed under Section 51(7)(b) of the Act was based on the belief that there was an attempt to evade tax. However, the Tribunal's analysis revealed that the documents were genuine, and the goods were intended for self-consumption in a specific project. The Tribunal highlighted that the transaction was an interstate sale, with no element of Punjab State tax involved. The Tribunal concluded that the penalty was unjustified, as there was no violation of the Act's provisions, and the goods were voluntarily reported at the ICC.4. The respondent filed an appeal before the Tribunal after the Deputy Excise and Taxation Commissioner's order was dismissed. The Tribunal accepted the appeal on 11.11.2011, leading to the State of Punjab's appeal against the Tribunal's decision. The Tribunal's findings, based on the genuine nature of the documents and the intended self-consumption of the goods, led to the dismissal of the State's appeal.5. The Tribunal's detailed analysis concluded that there was no error on the part of the respondent-dealer, and no attempt to evade tax was evident. The Tribunal highlighted the genuine nature of the documents, voluntary reporting at the ICC, and proper payment channels used in the transaction. The Tribunal's findings were deemed reasonable, and no substantial question of law arose, resulting in the dismissal of the State of Punjab's appeal.