Court allows Trade Tax Revision despite delay due to COVID-19, upholding Tribunal's decision on under-valuation & tax evasion allegations.

The Court condoned the delay in filing the Trade Tax Revision due to COVID-19 impact, treating the revision as timely filed. The case involved allegations of under-valuation of goods and tax evasion by a dealer in Sanitary goods, with discrepancies in MRP markings on imported tiles. While the First Appellate Authority accepted the dealer's explanation attributing discrepancies to the vendor's negligence, the Tribunal allowed the taxing authority's appeal, alleging collusion for tax evasion. The Court upheld the Tribunal's decision, dismissing the Trade Tax Revision based on findings of under-valuation and intention to evade tax.

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Issues:
1. Condonation of delay in filing Trade Tax Revision.
2. Allegations of under-valuation of goods and tax evasion.
3. Discrepancies in valuation of goods and intention to evade tax.

Analysis:
1. The Court considered an application for condonation of delay in filing the Trade Tax Revision due to the impact of COVID-19. The delay was attributed to the lockdown situation, and in line with a Supreme Court observation, the delay was condoned, treating the revision as filed in time.

2. The Trade Tax Revision involved a case where a dealer in Sanitary goods was accused of under-valuation of goods and tax evasion. The dealer had imported tiles with discrepancies in MRP markings, leading to suspicion of tax evasion. The taxing authority imposed a penalty under Section(1)(14) of U.P. Value Added Tax Act. The First Appellate Authority accepted the dealer's explanation, citing negligence on the part of the vendor in marking the tiles with a lower MRP. However, the Tribunal later allowed the appeal of the taxing authority, alleging collusion between the vendor and the dealer for tax evasion.

3. The Court examined the discrepancies in the valuation of goods and the intention to evade tax. The dealer argued that the discrepancies were due to the vendor's mistake in marking the MRP on the tiles. However, the State respondents contended that there was under-valuation with the intention of tax evasion, supported by differing explanations provided by the dealer to different taxing authorities. The Court upheld the Tribunal's decision, finding no legal or factual infirmity in the order, dismissing the Trade Tax Revision.

Overall, the judgment addressed the issues of delay condonation, under-valuation of goods, and intention to evade tax in a detailed manner, considering the explanations provided by the parties involved and the findings of the taxing authorities and the Tribunal.

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