Penalty for tax evasion upheld where manipulated documents and failure to produce supporting records showed purchase without invoice or tax payment.

Penalty under Section 51(7)(b) of the Punjab Value Added Tax Act, 2005 was sustained because the authorities recorded concurrent findings that the transaction documents were manipulated, the goods were purchased without invoice and without payment of tax, and there was an attempt to evade tax. The appellant also failed to produce the invoice, account books, or other supporting records when called upon. On that factual basis, the challenge to the penalty could not succeed, and the penalty was upheld.

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Issues: Whether penalty under Section 51(7)(b) of the Punjab Value Added Tax Act, 2005 was sustainable on the facts, where the authorities found an attempt to evade tax and the appellant failed to produce supporting documents.

Analysis: The goods were detained while the transaction documents were under scrutiny, and the appellant did not produce the invoice, account books, or other supporting records when called upon to do so. The authorities below concurrently held that the documents were manipulated and that the goods had in fact been purchased without invoice and without payment of tax, constituting an attempt to evade tax. In view of these concurrent findings and the material on record, the challenge to the penalty could not succeed.

Conclusion: The penalty under Section 51(7)(b) was upheld and the challenge failed.

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