2024 (5) TMI 1428

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.... 'the ODC'). However, the authorities in the instant case concluded that since the goods had travelled at a faster speed and reached the destination quickly, the vehicle cannot be categorised as the ODC. 3. The counsel appearing on behalf of the petitioner submits that the respondent authorities did not undertake the task of calculating the height of the goods which clearly would have indicated that the goods would be classified as the ODC since the same were 13.9 feet above the ground. Counsel on behalf of the petitioner also relied on a circular issued by the Commissioner, State Tax dated January 17, 2024, which states in paragraph 2.4 as follows:- 4. In the above circular, it has also been pointed out that a vehicle other than ....

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....ade tax. One may rely upon the judgments of this Court in the case of Girish and Company vs. State of U.P. and others (Writ Tax No.897 of 2019, Neutral Citation No.-2024:AHC:9778) and M/s Hindustan Herbal Cosmetics vs. State of U.P. and others (Writ Tax No.1400 of 2019, Neutral Citation No.-2024:AHC:209) where it has been held that presence of mens rea for evasion of tax is a sine qua non for imposition of penalty. 9. The imposition of penalties on the petitioner rests on shaky ground, devoid of any substantive basis or findings indicating an intention to evade tax. This deficiency in evidentiary support undermines the legitimacy of the penalties and raises questions about the procedural fairness of the administrative actions taken against....

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....st in the fairness and impartiality of governmental actions and fosters a perception of arbitrariness and caprice. Such actions not only prejudice the rights of the affected parties but also undermine the legitimacy of the regulatory framework as a whole, casting doubt on the efficacy and reliability of tax enforcement mechanisms. 10. The rationale behind the mens rea requirement is twofold. Firstly, it serves to preserve the integrity of the legal system by distinguishing between inadvertent errors and intentional misconduct. By requiring evidence of wilful intent, it ensures that penalties are reserved for those who deliberately flout the law, thereby safeguarding against unjust punishment and preserving public confidence in the fairness....