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2023 (10) TMI 1103 - HC - VAT and Sales TaxQuashing of penalty - forged document or not - necessary document not considered on the sole ground that it was produced after 08 days and presumption has been made that it was a forged document - import of badam for which the additional duty of custom is paid and this duty is also refunded. HELD THAT:- In M/s Anand Refrigeration Co. (P) Ltd’s case [2010 (1) TMI 1116 - PUNJAB AND HARYANA HIGH COURT], the Division Bench has considered Section 14-B (7) of PGST Act, 1948 and held that the combined reading of these provisions would reveal that the appropriate authority under the Act, is under legal obligation to conduct an enquiry after serving a notice to the consignor or consignee and give him an opportunity of being heard. If after the enquiry, such officer finds that there has been an attempt to avoid or evade the tax due or likely to be due under this Act, he shall, by order, impose on the consignor or consignee of the goods, a penalty, which shall not be less than twenty per cent and not more than thirty per cent of the value of the goods and in case he finds otherwise, he shall order the release the goods and the vehicle. In the present case, the only ground for imposing penalty was given that the document (P-8) was given by the petitioner after 08 days. However, giving the documents after 08 days would not make it a forged document. Further the invoice has been issued by a Company from U.S.A. The finding that this invoice is forged and fabricated has been given without verifying the contents of the invoice (P-8). This finding cannot be given without enquiry and there was no attempt of evading tax. Moreover, the petitioner was importing the badam for which he has paid the additional duty of custom and this duty is also refunded. Petition allowed.
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