Penalty for missing transport documents upheld where goods were intercepted without required papers and tax evasion was inferred.

Under the Punjab Value Added Tax Act, the penalty for detention of goods vehicles at a check post was upheld because the person in charge failed to carry and produce the prescribed transport documents for the excess goods at the time of interception. The explanation that the consignor's TIN was blocked and invoices were produced later was rejected, as the documents were required to accompany the goods when intercepted. The absence of supporting account books and the surrounding circumstances were treated as indicating an intention to evade tax, so the penalty under Section 51(7)(c) was sustained.

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Issues: Whether the penalty imposed under Section 51(7)(c) of the Punjab Value Added Tax Act, 2005 was justified on the facts of the case.

Analysis: The statutory scheme governing information collection centres and check posts requires the person in charge of the goods vehicle to carry and produce the prescribed transport documents and to furnish the relevant declaration at the nearest check post or information collection centre. The record showed that the vehicles were detained after weighment revealed excess goods and that the drivers did not produce the requisite documents for the excess goods at the time of interception. The explanation that the consignor's TIN was blocked and the documents were later produced was not accepted, since the documents ought to have accompanied the goods at the relevant time and the later production of invoices was treated as an afterthought. The absence of supporting account books and the circumstances of detention led to the finding of an intention to evade tax.

Conclusion: The penalty under Section 51(7)(c) was rightly sustained and the appeal failed.

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