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2023 (10) TMI 1102 - HC - VAT and Sales TaxValidity of continuing the criminal proceedings on the same set of facts, which the Adjudicating Authorities declared that the allegations against the petitioners of having contravened the provisions of the VAT Act with an intent to evade tax cannot be sustained - Purchase of new vehicles from secret routes to avoid the barriers established by the Punjab Govt. on the basis of fake papers with an intent to evade tax - HELD THAT:- In view of the ratio of law laid down in Radheyshyam Kejriwal's case [2011 (2) TMI 154 - SUPREME COURT] this Court is of the view that the twin test prescribed for determining the effect of the orders passed by Adjudicating Authority/Tribunal on the criminal proceedings is : (i) Whether the allegations in the adjudication proceedings as well as the proceedings for prosecution are identical? and (ii) Whether the exoneration of the person concerned in the adjudication proceedings is on merits ? The afore-prescribed twin test when applied to the present case, this Court finds that the case of the petitioners is fully covered by the ratio of law laid down in Radheyshyam Kejriwal's case and thus merits acceptance. Keeping in view the fact that the Tribunal has already quashed the penalty against the Firm and has found that there was no case of tax evasion as being alleged by the Revenue, this Court finds that the FIR on the same set of allegations cannot be allowed to continue. Petition allowed.
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