Penalty for missing transport documents set aside where goods were fully disclosed and no intent to evade tax was shown.

Penalty for allegedly withholding documents accompanying goods was found unsustainable where the consignment was voluntarily reported at the check post, the declaration forms, delivery note and goods receipt disclosed the full load, and the missing invoice was later produced. The Tribunal accepted that the invoice had been inadvertently left in the vehicle, found no deliberate suppression or intent to evade tax, and concluded that the statutory requirements for penalty were not met. The High Court treated that appreciation of evidence as a possible view and found no illegality, perversity or substantial question of law arising from it.

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Issues: Whether penalty imposed for allegedly withholding documents accompanying the goods was justified when the Tribunal found that the consignment was voluntarily reported at the check post and the missing invoice was later produced, and whether any substantial question of law arose.

Analysis: The relevant documents showed that the declaration forms, delivery note and goods receipt disclosed the full consignment, including the disputed 370 bags. The Tribunal found that the invoice was inadvertently left in the vehicle by the driver and was promptly produced when pointed out. On those facts, the Tribunal held that there was no deliberate withholding of documents, no material to infer an intent to evade tax, and no violation of the statutory requirements attracting penalty. The High Court found that this view was a possible one and no illegality or perversity was demonstrated in the appreciation of evidence.

Conclusion: The penalty was not sustainable, and the appeal was liable to be dismissed.

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