Penalty under U.P. VAT upheld where genuine documents and books supported the goods, and no intent to evade tax was found.

Penalty under the U.P. VAT Act was upheld where the appellate authorities found that the goods were supported by proper and genuine documents, duly recorded in the books of account, and not shown to be in excess. They also noted that no physical verification after unloading, expert examination, or trade comparison had been undertaken, and no satisfactory discrepancy in the goods was recorded. On those concurrent findings, the element of intention to evade tax was negatived, and the revision challenging the penalty was dismissed.

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Issues: Whether penalty under Section 54(1)(14) of the U.P. VAT Act, 2008 was sustainable on the facts found by the appellate authorities.

Analysis: The appellate authorities recorded concurrent findings that the goods were covered by proper and genuine documents, were duly accounted for in the books of account, and were not established to be in excess. It was also found that neither physical verification of the goods after unloading nor examination by an expert or a dealer of the same trade was undertaken, and no satisfactory description of any alleged difference in goods was recorded. On these findings, the element of intention to evade tax was negatived.

Conclusion: The penalty was not liable to be interfered with in revision and the revision was dismissed.

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