2019 (7) TMI 456

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....en partly allowed and the amount of the original award passed under Section 15-A-(1) (O) of U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act), of Rs. 10,80,000/-, has been reduced to its half i.e. Rs. 5,40,000/-. 3. The present revision has been pressed on the following question of law:- "(ii) Whether, in the absence of any intention to evade payment of tax, a mere technical defect in Form-31 warrants imposition of penalty U/s 15 (A) (o) of the Act?" 4. Undisputedly, the assessee is a 100 % export oriented unit (EOU) that also had been granted exemption under Section 4 (A) of the U.P. Trade Tax Act as a new unit engaged in the manufacture of compact disc and digital video disc. In the aforesaid manufacturing activity, the as....

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....8 to supply the quantities of dye Irgephor ultra green chemical. 10 kgs of that commodity were dispatched by the consignor against its regular Invoice No. KA- 10400310 valued at Rs. 27 lacs. Those goods were dispatched by the consignor from Delhi to Noida to the address of the assessee on a scooter/two wheeler bearing registration No. DL-35 U/532. Those goods were also accompanied by the original consignment note, bill of entry and excise certificate . 7. During a road check, the aforesaid goods were detained by the trade tax authority in view of the fact that the description of the goods, the date and the invoice number were not found recorded on Form-31 accompanied with the goods. Consequently, the goods were also seized. 8. Since, it w....

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....l upheld the imposition of penalty but reduced the penalty to half. 10. Learned counsel for the assessee would submit that, in the facts of the present case, it was undisputed that the goods were brought inside the State of U.P. by the consignor to whom the assessee had already issued the aforesaid import declaration form. In any case, in view of the fact that the assessee is a 100% export oriented unit and also exempt from tax under the Act by virtue of eligibility certificate granted under Section 4 A of the Act and the further fact that neither there is any allegation of the assessee having ever sold the goods outside the State of U.P. nor it was its intention to evade tax, the penalty imposed, is wholly illegal and contrary to law. Ev....