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2010 (3) TMI 1013 - HC - VAT and Sales TaxWhether the Assistant Excise and Taxation Commissioner has travelled beyond his jurisdiction while imposing penalty under section 51(7)(c) of the Punjab VAT Act, 2005 when the goods were detained by the detaining officer on the short ground of nonproduction of form VAT-XXXVI issued by any ICC ignoring the fact that the State Government has not established any ICC on Pabhat to Shimla Road via Panchkula? Whether penalty could be imposed under section 51(7)(c) of the Punjab VAT Act, 2005 when the goods were sent to Himachal Pradesh by way of stock transfer and for sale on consignment basis which is permissible under section 6A of the Central Sales Tax Act, 1956 and no tax of the State is involved? Held that:- Once, it is proved that neither the assessee reported the goods meant for trade at the ICC barrier adopting the escape route nor produced the indicated relevant documents before the detaining or designated officer, then the intention of the assessee to avoid/evade the tax is inevitable, in the obtaining circumstances of the case. Therefore, it is apparent from record that the driver, who was the person in charge of the goods of the assessee, did not stop his vehicle despite signal. It was chased and brought back to the ICC barrier. The driver failed to produce the relevant documents, so much so the assessee did not produce any material before the designated officer to prove the genuineness of the transaction, despite adequate opportunities. All these facts if cumulatively put together, then the conclusion of evading or avoiding the tax is inevitable. Hence, it is held that the assessee has contravened/violated the provisions of the Act and the authorities below have rightly imposed the penalty on it (assessee), in the obtaining circumstances of the case. Against assessee.
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