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Issues: Whether penalty under Section 51(7)(b) of the Punjab Value Added Tax Act, 2005 was justified on the basis of non-reporting at the ICC and alleged evasion of tax, despite production of transport documents and prior intimation to the department.
Analysis: The goods were accompanied by invoice and declaration form, the consignee's godowns had already been intimated to the department through VAT Form-5, and the relevant information was accepted by the department before movement of the consignment. The record did not show any material to establish that the documents were false or that the transaction was a sham. Mere absence of reporting at the ICC, by itself, was insufficient to sustain a finding of attempt to evade tax where the supporting documents and the nature of the inter-State transaction were otherwise in order.
Conclusion: The penalty could not be sustained and the issue was decided in favour of the assessee.
Final Conclusion: The impugned appellate order was set aside and the challenge to the penalty failed, as the case did not disclose any proven attempt to evade tax.
Ratio Decidendi: Mere non-reporting at the ICC does not justify penalty under the Punjab Value Added Tax Act, 2005 unless the authority records a reasoned finding that the transaction documents are not genuine or that an attempt to evade tax is otherwise established.
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