VAT penalty unsustainable without proof of tax evasion intent despite invoice and Form-38 compliance issues.

Penalty under Section 54(1)(14) of the U.P. VAT Act was held unsustainable where the goods were supported by invoices and Form-38, and the only defect was that the form had been captured as a screenshot instead of being downloaded and printed from the departmental website. Earlier acceptance of similar screenshot-based Form-38 submissions without objection also supported the taxpayer's case. In the absence of any specific, cogent finding that the revisionist intended to evade tax, the statutory foundation for penalty was not established, and the matter was decided in favour of the revisionist.

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Issues: Whether penalty under Section 54(1)(14) of the U.P. VAT Act was sustainable in the absence of a specific finding that the revisionist intended to evade tax.

Analysis: The goods were accompanied by invoices and Form-38, and the dispute arose only because the form had been taken as a screenshot instead of being downloaded and printed from the departmental website. The record also showed earlier acceptance of similar screenshot-based Form-38 submissions without objection. In such circumstances, and in the absence of any specific or cogent finding by the authorities that the revisionist intended to evade tax, the statutory basis for penalty was not made out.

Conclusion: The penalty was not sustainable and the issue is decided in favour of the revisionist.

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