Rudra Pipes Pvt Ltd Vs Commissioner of Trade/ Commercial Tax (Allahabad High Court)
The Allahabad High Court allowed the revision against penalty proceedings under Section 54(1)(14) of the U.P. VAT Act. The assessee, a registered dealer in iron and steel, had purchased goods from Haryana using Form-38 and transported them to Uttar Pradesh, where they were sold within the State. The goods were detained and later seized, followed by penalty proceedings. The Tribunal dismissed the assessee’s appeal.
The Court noted that the use of two Form-38s for importing the goods was undisputed and that the forms had not been cancelled. The assessee’s disclosed turnover had also been accepted in the assessment proceedings. The Court found no cogent material contradicting the Form-38 transactions. It further held that the absence of a statutory requirement to submit a weighing slip could not sustain the adverse finding. Relying on the principle stated in M/S Rama Pulses, the Court held that mens rea to avoid payment of tax was necessary for imposing the penalty. Since the use of Form-38 indicated no intent to avoid tax, the impugned orders were quashed. The revision was allowed.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the parties.
