https://www.taxtmi.com/caselaws?id=779809 Penalty under the U.P. VAT Act was not sustainable where the goods were purchased for use in a photo-processing business, were being transported for installation, and no material showed that they were meant for sale or that there was an intention to evade tax. The mere fact that Form-38 was found blank at interception did not, by itself, establish mens rea or justify an adverse inference. The authority was required to consider the accompanying documents and the surrounding facts before imposing penalty. The revisional challenge therefore succeeded on the basis that a blank transit form alone is insufficient to uphold penalty absent evidence of evasion. en-us Tue, 07 Oct 2025 00:00:00 +0530 Tue, 14 Oct 2025 09:39:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779809 Penalty under the U.P. VAT Act was not sustainable where the goods were purchased for use in a photo-processing business, were being transported for installation, and no material showed that they were meant for sale or that there was an intention to evade tax. The mere fact that Form-38 was found blank at interception did not, by itself, establish mens rea or justify an adverse inference. The authority was required to consider the accompanying documents and the surrounding facts before imposing penalty. The revisional challenge therefore succeeded on the basis that a blank transit form alone is insufficient to uphold penalty absent evidence of evasion. Case-Laws VAT / Sales Tax Tue, 07 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779809