2022 (5) TMI 557 - ALLAHABAD HIGH COURT - CST, VAT & Sales Tax

Head Note / Extract:
Levy and collection of Entry tax - Cigarette - applicability of provisions of Section 28-A to goods which are exempt under Section 4 of U.P. Trade Tax Act, 1948 - Whether the provisions of Section 6 of the U.P. Tax on Entry of Goods Act, 2000 cast an obligation on an Importer to carry Form- 31 in case of goods which are exempt under clause (a) of Section 4 of the U.P. Trade Taxt Act, 1948? - HELD THAT:- Admittedly, along with goods in question, bill, bilti and Form-35 were present and no discrepancies were found in the said documents except the fact that Form-31 could not be produced which was duly submitted later on. All entries of dispatch of goods either outside the State or in the State of U.P. have been duly made in the books of account so there cannot be said to be any intention to evade payment of tax - Further this Court in the case of M/s Sarvashri Ramesh Chand Santosh Kumar vs. Commissioner of Trade Tax, U.P. Lucknow [2010 (7) TMI 906 - ALLAHABAD HIGH COURT] has held that in absence of Form-31, the penalty cannot be justified. The intention to evade payment of tax is not there. Further recently, this Court in M/s Colgate Palmolive India Limited vs. Commissioner of Commercial/Entry Tax, Lucknow [2021 (11) TMI 68 - ALLAHABAD HIGH COURT] has held that non availability of Form-31 cannot be a ground for levying of penalty under Section 15-A (1) (O) in absence of specific intention to evade payment of tax. In the case in hand, it is evidently clear from the record that all entries were made in the books of account of the revisionist and there was no intention to evade payment of tax, hence the penalty order passed by the Tribunal cannot be sustained in the eyes of law and is hereby quashed. The revision is allowed.