Attempted tax evasion and penalty sustained where invoice and books were not produced at interception under VAT law.

Non-production of the invoice and books of account at interception, together with the absence of any plausible explanation and crossing the inter-State check-post without the prescribed declaration, was treated as supporting an inference of attempted tax evasion under the Punjab Value Added Tax Act, 2005. The HC found the Tribunal's concurrent factual conclusion to be based on the record and not shown to be illegal or perverse, so the penalty was sustained. Earlier Tribunal orders on different facts and the cited precedent were held not to assist the assessee.

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Issues: Whether penalty for non-production of invoice and books of account at the time of interception, and the finding of attempted tax evasion, were sustainable under the Punjab Value Added Tax Act, 2005.

Analysis: The goods vehicle was intercepted while the goods were being taken out of State, but the invoice and books of account were not produced before the inspecting authority despite demand. The Court treated this non-production, coupled with the absence of any plausible explanation and the crossing of the inter-State check-post without the prescribed declaration, as evidence supporting the inference of an attempt to evade tax. The concurrent finding recorded by the Tribunal was based on the record and was not shown to be illegal or perverse. The Court also held that earlier Tribunal orders in different factual situations and the cited precedent did not assist the assessee.

Conclusion: The penalty and the concurrent factual finding of attempted tax evasion were upheld against the assessee.

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