Sonu Metal Store Vs Commissioner of Commercial Tax U.P. Lucknow (Allahabad High Court)
The revision before the Allahabad High Court challenged the order dated 26.02.2020 passed by the Commercial Tax Tribunal, Muzaffarnagar Bench, in Second Appeal No. 246/2019 relating to Assessment Year 2014–15. The questions of law raised concerned whether the authorities were justified in detaining the vehicle and imposing penalty under Section 48(5) of the UP VAT Act despite the dealer producing documents, whether the penalty was valid in the absence of intention to evade tax, whether the Tribunal failed to properly consider the case at the first appellate stage, and whether the Tribunal’s order was legally sustainable.
The revisionist, a proprietorship engaged in scrap metal trade, transported goods worth ₹29,922 with ₹5,980 Central Tax through a transporter using Truck No. UP 12 T 9280. On 06.10.2024, the Mobile Squad of the Commercial Tax Department intercepted the vehicle, stating that no documentary evidence was produced at that time. The driver reportedly stated that the goods were cloth, but physical verification revealed copper. The vehicle was thereafter detained and a penalty of ₹1,22,400 was imposed, which was paid for release of the goods.
Proceedings under Section 48(5) were initiated, and despite the revisionist submitting a reply, the penalty order was passed on 31.03.2016. The first appeal was dismissed on 02.03.2019, and the Tribunal also dismissed the second appeal.
