Penalty for tax evasion not sustained where transport documents were later produced before seizure and no intent to evade was shown.

Penalty under Section 15-A(1)(o) of the U.P. Trade Tax Act was held unsustainable where the goods were shown as stock transfer, the relevant papers had already been checked and stamped at an earlier check-post, and the invoice, Form 31, transport documents and way bill were produced before the seizure order. The governing principle applied was that penalty arises only on contravention of Section 28-A coupled with an attempt to evade tax. Mere initial non-production of the declaration, followed by production of the documents before seizure, did not by itself establish such intent to evade, so the penalty was not justified.

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Issues: Whether penalty under Section 15-A(1)(o) of the U.P. Trade Tax Act, 1948 was sustainable when the relevant documents were produced before the seizure order and no attempt to evade tax was established.

Analysis: The goods were being transported as stock transfer and the record showed that the papers had already been checked and stamped at the earlier check-post. At the U.P. entry check-post, the discrepancy in the trip-sheet led to detention, but the revisionist produced the invoice, Form 31, transport documents and way bill in reply to the show cause notice before the seizure order. The governing principle is that penalty under Section 15-A(1)(o) is attracted only when there is contravention of Section 28-A with an attempt to evade tax. Mere non-production of the declaration at the first instance, when the documents are subsequently produced before seizure, does not by itself establish such intention.

Conclusion: The penalty was not justified and the revisionist succeeded.

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