Penalty for tax evasion upheld where transport irregularities and non-generation of required information showed intent to evade tax.

Penalty under the Punjab Value Added Tax Act was upheld because the Tribunal's factual findings supported an inference of intent to evade tax. The goods were transported in an Innova car rather than a goods carrier, the driver admitted crossing the ICC without generating the required information, and the explanation for non-compliance was found unacceptable. As no illegality or perversity in those findings was shown in second appeal, the court declined interference and held that no substantial question of law arose.

---

---

Issues: Whether the penalty imposed under Section 51 of the Punjab Value Added Tax Act, 2005 was liable to be interfered with on the ground that there was no attempt to evade tax and that the material on record had not been properly considered.

Analysis: The Tribunal recorded findings of fact that the goods were carried in an Innova car instead of a goods carrier, the driver's affidavit admitted that he crossed the ICC without generating the required information, and the explanation that he was unaware of the ICC location was unacceptable because the assessee had earlier used the same route frequently. On that basis, the Tribunal held that the explanation was a device to avoid the charge and that the circumstances strengthened the inference of an intention to evade tax. No illegality or perversity in those findings was shown in second appeal.

Conclusion: The penalty was upheld and no substantial question of law arose for interference.

---