TaxTMI 
TaxTMI 
2006 (11) TMI 579
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....ing of paper and allied items. On September 23, 2005, the petitioner sold a consignment of paper to a Delhi dealer and goods were loaded on truck No. HR-38L-3685. In transit, the consignment was intercepted and detained on September 24, 2005 by respondent No. 2, the Excise and Taxation Officer-cum-Assistant Director (Investigation), Patiala, under section 51(6)(a)(b) read with Explanation under section 51(7)(d) of the Act and show cause notice, annexure P 1, was issued proposing to levy penalty for evading tax on the ground that the petitioner had given wrong description of goods in the bill. The petitioner gave reply and relied upon RG-1 register maintained under the provisions of the Central Excise Act, 1944. He submitted that the consign....
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.... Mills Ltd. [1985] 154 ITR 135 and Radhakrishan Naidu v. Government of Andhra Pradesh [1977] 1 SCC 561, it is further stated that the goods comprised in the consignment being card-board, higher rate of tax was attracted and since the petitioner was transporting the goods mis-describing the cardboard as paper, attempt to evade tax was patent. The fact that the Assessing Authority has accepted the description of the goods as "duplex paper", taxable at the rate of one per cent Central sales tax before and even after the detention of the consignment by the Checkpost Officer, has not been disputed. It is stated that the stand of the Assessing Authority was wrong and the stand of the check-post officer was correct. It is further submit....
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....r checking evasion when a person either conceals relevant information, gives misleading information or acts in any other clandestine way or where from the available information itself, attempt to evade tax is patent. The said power has to be exercised with caution and not as a substitute for ordinary assessment or penalty as separately provided for under the Act. Exercise of power may sometime be overlapping and mere existence of an alternative procedure is not conclusive for not exercising the said powers, where it is clear that either there is evasion there being deficiency in documents, inaccurate declaration having been made about description, value and contents of goods or otherwise but where there may be bona fide dispute about interp....
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....iction of the check-post officer); State of Haryana v. Sant Lal [1993] 91 STC 321 (SC); [1993] 4 SCC 380 (SC), Tripura Goods Transport Association v. Commissioner of Taxes [1999] 112 STC 609 (SC); AIR 1999 SC 719, Saral Kumar v. State of Haryana [2000] 118 STC 17 (SC), State of Rajasthan v. D. P. Metals [2001] 124 STC 611 (SC); AIR 2001 SC 3076, Commercial Tax Officer v. Swastik Roadways [2004] 135 STC 1 (SC); [2004] 3 SCC 640 (SC), A. B. C. (India) Ltd. v. State of Assam [2005] 142 STC 88 (SC); [2005] 6 SCC 424 (SC) and Krishna Bus Service Private Limited v. State of Haryana AIR 1985 SC 1651 (provisions for records to be maintained by carrying and forwarding agents and detention of transport vehicles); Comptroller and Auditor General of In....