2015 (10) TMI 1846

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....erritory, Chandigarh (in short, "the Tribunal") in STA No.17 of 2012 dismissing its appeal, claiming following substantial questions of law:- "i) Whether in the facts and circumstances of the case, the imposition of penalty is sustainable in law? ii)Whether in the facts and circumstances of the case, the orders Annexures A.3 and A.5 are non speaking orders? iii)Whether in the facts and circumstances of the case, the penalty could be imposed on the appellant even when the purchasing dealers were registered dealers in State of Punjab and the only defect pointed out was that the declaration forms were not issued by the department to them? iv)Whether in the facts and circumstances of the case, the penalty could be imposed without th....

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....e above said concerns. According to the appellant, during the assessment proceedings, a blank paper was got signed by the assessing authority from its partner on which later on his admission was recorded with regard to in-genuineness of the declaration forms. The appellant in order to avoid litigation deposited the deferential rate of tax. The assessing authority initiated interest and penalty proceedings. The appellant pleaded that for imposition of penalty some material more than what was there in the assessment proceedings should be there. The assessing authority charged interest and penalty vide order dated 2.12.2009, Annexure A.2. Aggrieved by the order, the assessee filed appeal before the first appellate authority which was dismissed....

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.... "There is a privity between the seller and the buyer when a sale is made against C form. The seller deposits tax at concessional rate of tax in respective quarter of the year concerned in which sale is made. In this case, based on the verification report received by the department and subsequently the detailed notice being issued to the taxable person regarding bogus C forms. The person failed to produce any document in reference to the genuineness or replacing the bogus C forms by genuine C forms during the proceeding of the assessment. Further the partner of the firm gave a written admission statement at the time of assessment as placed on the file that incorrect documents were produced with a view to evade tax. From the facts of the ca....