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2014 (9) TMI 912 - ALLAHABAD HIGH COURTSeizure of goods - penalty proceeding was initiated against the respondent-assesee under Section 54(1)(14) of U.P. Value Added Tax Act, 2008 - Held that:- Undisputedly, the respondent-assessee is engaged in processing of frozen meat.The goods in question were imported by the assessee as capital goods for installing it in its unit for the purpose of doing job work/processing of meat. These goods were not for sale by the assessee. These goods were purchased against Form-C and the payment was made on 11.9.2008 and 25.3.2009, i.e. before import of goods. When the goods were intercepted, the assessee replied that Form-38 was sent in advance to the selling dealer, but inadvertently, it was not handed over by them to the driver of the truck. The said Form-38 was obtained by the assessee from the selling dealer and was submitted before the assessing authority prior to the seizure of goods. The assessing authority has also not recorded any finding that the goods in question were for sale. The first appellate authority and the Tribunal have recorded a finding of fact that the goods in question were capital goods which were purchased by the assesee against Form-C and the same were not for sale, but for installing it in its unit. A finding of fact based on consideration of relevant materials available on record has been recorded by the first appellate authority and the Tribunal, that there was no intention to evade payment of tax. The findings so recorded are findings of fact. In the absence of any cogent reason or basis for intention to evade payment of tax, penalty under Section 54 (1) (14) of the Act, was not leviable and as such the first appellate authority has lawfully set aside the penalty. The Tribunal has committed no error of law or facts to uphold the order of the first appellate authority. - no infirmity in the order of the Tribunal - decided against Revenue.
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