Penalty for accounted goods set aside where the dealer's same-day bill and consistent explanation showed no discrepancy in records.

Penalty under Section 13-A(4) of the U. P. Trade Tax Act, 1948 was held unsustainable where the goods belonged to a registered dealer, the bill was produced on the same day, and the account books and returns showed no discrepancy. The dealer's explanation was given at the earliest opportunity and remained consistent: the goods were being taken for weighing because no Dharam Kanta was available at the business premises, and the bill would be handed over after weighing. As the provision targets goods not relatable to a registered dealer or not duly accounted for, the explanation could not be treated as unbelievable and the penalty was deleted.

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Issues: Whether penalty under Section 13-A(4) of the U. P. Trade Tax Act, 1948 was sustainable when the goods belonged to a registered dealer, the bill was produced on the same day, and no discrepancy was found in the account books.

Analysis: The dealer explained at the earliest opportunity that the goods were covered by an issued bill, that they were being taken for weighing because no Dharam Kanta was available at the business premises, and that the bill would be handed over after weighing. The explanation was consistent with the contemporaneous reply, the bill was produced on the same day, and the record showed no other discrepancy in the books or returns. Penalty under Section 13-A(4) is intended for cases where the goods are not relatable to a registered dealer or are not duly accounted for. On these facts, the explanation could not be rejected as unbelievable.

Conclusion: The penalty was not sustainable and was liable to be deleted.

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