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2022 (3) TMI 859 - HC - VAT and Sales TaxLevy of penalty u/s 54(1)(14) of the Uttar Pradesh Value Added Tax Act, 2008 - penalty could be sustained without recording any cogent finding as to intention to evade tax or not? - HELD THAT:- It transpires that in assessment year in question the assessee was found transporting ten containers of Bitumin black from a registered dealer at Kolkata (West Bengal). These were intercepted in the course of import into the State. At that time the goods were accompanied to import declaration Form-38. In that, all columns except Column 6 was duly filled up. Besides the fact that the assessee explained the aforesaid as inadvertence on part of the consignor, the assessing authority did not record any finding as to intention to evade tax on part of the assessee. The penalty order was passed mechanically imposing penalty solely on account of Column 6 found blank. A division Bench of this Court in M/S Rama Pulses Vs State of U.P. & Others [2009 (10) TMI 885 - ALLAHABAD HIGH COURT] where it was held that before imposing penalty the authority has to give notice under Section 54 (1) and to record a finding either on the basis of material before it, or produced by the dealer, or any other person, or the department and which may include incomplete Form 38, (which may be a ground for seizure of the goods), that there was an intention to evade the payment of tax. In absence of any cogent finding as to intention to evade tax, levy of penalty under Section 54(1)(14) of the Act, is unsustainable - revision allowed.
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