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2019 (9) TMI 696 - HC - VAT and Sales TaxImposition of penalty u/s 15-A(1)(o) of the U.P. Trade Tax Act, 1948 - alleged discrepancy of issuance of the import declaration form by the assessee against the goods, actually imported by the subsidiary ITC - Whether the use of Form 31 in the name of the revisionist in case of consignment to its job worker amounts to a violation of Section 15A(1)(o) of the U.P. Trade Tax Act, 1948? HELD THAT:- It is a settled position in law that for sustaining the imposition of penalty, under Section 15-A(1)(o) of the Act, the finding as to the intention to evade tax is a sine qua non. In the present case, that finding has not been recorded by the assessing authority. The penalty has been imposed and it appears that the same has been sustained by the appeal authorities, solely on account of the technical breach noted by the assessing authority, of the import declaration form having not been issued by the ITC but by the assessee. Such finding would not satisfy the test or requirement to sustain the penalty being that there must be shown to exist the intention to evade tax. The import of the goods, thus being disclosed, though by the holding company, all other matters would remain to be considered in the assessment proceedings wherein it may have been open to the authorities to draw appropriate conclusions, as to the hands at which such goods may be taxed. Thus, in absence of any finding as to intention to evade tax and the undisputed fact that the assessee was the holding company that had issued valid Form-XXXI to cover the import of goods by it's subsidiary, no penalty could have been imposed under Section 15-A(1)(o) of the Act - revision allowed.
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