New Tech Engineers Vs Commissioner of Commercial Tax (Allahabad High Court)
The Allahabad High Court quashed a VAT penalty imposed on New Tech Engineers under Section 48(5) of the Uttar Pradesh VAT Act, holding that a brief delay in producing documents during transit does not constitute grounds for penalty. The revision arose from proceedings concerning Assessment Year 2008-09, where goods transported by the revisionist’s vehicle were intercepted, and a seizure was made after a vehicle breakdown. At the time of interception, the relevant documents were with the vehicle’s helper and could not be immediately produced. However, within half an hour, all required documents were submitted. Despite this, the authorities proceeded with penalty proceedings under Section 48(5) of the VAT Act.
The revisionist submitted that due entries were duly made in the books of account, as stated in a written reply during the penalty proceedings, and no provisional assessment or inspection of the premises was conducted immediately after the seizure. The First Appellate Authority allowed the revisionist’s appeal, recognizing that entries were properly maintained in the books. Subsequently, the Commercial Tax Tribunal allowed the Revenue’s appeal without recording independent findings of fact or considering the revisionist’s written submissions, including Form C and the affidavit explaining the delay in producing the documents.
