Intex Technologies (India) Ltd. Vs State of Punjab & Ors (Panjab Haryana high court)
The Punjab and Haryana High Court considered an appeal under Section 68 of the Punjab Value Added Tax Act, 2005 (PVAT Act) against the order of the Punjab VAT Tribunal dated 26.11.2015, which had affirmed the penalty of ₹94,500 imposed under Section 51(7)(c) of the PVAT Act by the Assistant Excise and Taxation Commissioner-cum-Designated Officer, ICC, Shambu (Import).
The appellant, a registered dealer under the PVAT Act and the Central Sales Tax Act, 1956, was engaged in the resale of mobile phones, their parts, computers, and computer peripherals. In the ordinary course of business, its Delhi head office dispatched 900 mobile phones valued at ₹26,37,600 to its own godown in Ludhiana through a stock transfer covered by a Stock Transfer Note. During transit, the consignment was intercepted under Section 51 of the PVAT Act. Although the driver produced the supporting documents, the authorities formed the view that the consignment contained not only mobile phones but also accessories, which were taxable at a higher rate than mobile phones. Treating this as an attempt to evade tax, penalty proceedings were initiated. The original penalty order dated 26.04.2010 was set aside in appeal and remanded, following which a fresh penalty order dated 23.08.2012 was passed. The First Appellate Authority rejected the appeal on 28.03.2014, and the VAT Tribunal also dismissed the subsequent appeal, leading to the present proceedings before the High Court.
