TaxTMI 
TaxTMI 
2024 (7) TMI 1657
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....mation Collection Centre, Zirakpur, on 10.10.2015, transporting the consignment from Zirakpur to Baddi. 3. That on asking, driver of the vehicle produced Invoice-cum-Delivery Challan no.7000308003 and 7000308000 dated 09.10.2015 alongwith GR No.240501 dated 09.10.2015 showing the transaction as 'Stock Transfer' from Zirakpur to M/s Godrej Consumer Products Limited, District Solan, Himachal Pradesh, disclosing the description of goods as "Nivea Soft Cream" 25ML-Rs.49/-FRWEzee 1 Kg Jar P60, Qty in Pcs. 2,00,000, value per piece @ 0.01 with Gross turnover of Rs. 2,600/-. Likewise same particulars were disclosed in another challan bearing No. 7000308000 except quantity (39,999 Pcs.) and Gross amount Rs. 519.99/-. 4. The said goods were covered vide Stock Transfer Notes dated 09.10.2015 for an amount of Rs. 3119.99/- as the said goods were meant for sales promotion scheme to be given against purchase of Ezee detergent. Alongwith the Stock Transfer Note, Goods Receipt dated 09.10.2015 issued by Shree Balaji Transolutions Pvt. Ltd. was also accompanying the goods. 5. That accordingly to verify the genuineness of documents produced, goods were detained under Section 51(6)(a) of the PVAT....
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....ence. Judgment was reserved on 20.10.2015 and on 21.10.2015, it was released and penalty to the tune of Rs. 14,16,558/- under Section 51(7)(b) of the PVAT Act was imposed. 8. The appellant filed an appeal under Section 62(1) of the PVAT Act against the penalty order dated 21.10.2015 under Section 51(7)(b) of the PVAT Act passed by the Excise and Taxation Officer-cum-Office Incharge, Information Collection Centre, Zirakpur, imposing the penalty of Rs. 14,16,558/-. The same was dismissed by the Deputy Excise and Taxation Commissioner (Appeals)-cum-Joint Director (Investigation), Patiala, vide order dated 27.05.2016. 9. The appellant further filed appeal against the order dated 27.05.2016 passed by the Deputy Excise and Taxation Commissioner (Appeals)-cum-Joint Director (Investigation), Patiala, before the learned Tribunal and the learned Tribunal, vide order dated 20.02.2017, dismissed the appeal filed by the appellant. Hence, the present appeal. SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES 10.Learned counsel for the appellant contends as under:- (i) That the Excise and Taxation Officer has failed to appreciate the fact that the transaction in question is a stock transfer and....
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....ed. 12. Vide order dated 12.07.2018, this Court framed the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the order of the Punjab VAT Tribunal is wrong and illegal insofar as it has upheld the penalty on the ground that appellant has wrongly mentioned the estimated value of goods ignoring the fact that such goods were to be used in the sales promotion and value of said goods does not carry any significance? (ii) Whether on the facts and in the circumstances of the case, the Punjab VAT Tribunal was justified in upholding the penalty in a case of stock transfer on the ground of valuation where the goods have been voluntarily reported at ICC even though value of goods has no significance in the case of stock transfer?" 13. We have heard learned counsel for the parties and perused the whole record of this case, which was called through the State counsel. ANALYSIS OF RECORD 14. A perusal of the record shows that the goods were voluntarily reported at Information Collection Centre, Zirakpur, on 10.10.2015. Further, as per the record, the goods in question were purchased from M/s Nivea India (P) Ltd., Mumbai, against Invoic....
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.... Thus, from the aforesaid definition as enacted in the Act, it can't be said that "Nivea Cream" purchased by the appellant company was not meant for the purpose or trade business or had no role in the business or trade. As such, the goods which had been brought by the appellant from Mumbai dealer to the State of Punjab and thereafter these were taken to Himachal Pradesh, the element of Punjab is tax involved. Now coming to the value of stock transfers as produced by the appellant at the time of checking, it may be observed that the appellant produced stock invoices showing the value of 2,40,000 pieces as Rs. 3119.99/- whereas the actual value of this quantity of Nivea Cream pieces, as per the invoice issued by M/s Nivea India Ltd. was Rs. 41,34,375/-. Section 45 of the Punjab Value Added Tax Act mandates the requirements to be performed at the time of preparation of the delivery challan/stock transfer. Section 45(4) of the Act reads as under:- Section 45(4) Where the goods are transferred otherwise then by way of sale, the taxable or registered person shall in respect of the goods transferred or consigned by him or on his behalf, issue to the consignee a delivery challan in s....