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2015 (11) TMI 880 - HC - VAT and Sales TaxDetention of goods alongwith documents under Section 14-B(6)(i) - Goods detained to verify the correctness of documents - Imposition of penalty - Held that:- On 9.7.1991, the check barrier officer had intercepted one consignment of mustard oil packed in several tins. After scrutinizing the documents accompanying the consignment, interception note was issued. The petitioner appeared before the officer and apprised the detaining officer of the entire situation and circumstances. Despite explanation furnished by the trader, penalty under Section 14-B(7) was imposed and then was recovered in cash. The basis for imposing penalty was that the goods were sold in the course of inter-State sales and there was an attempt to evade tax. - allegations are that the goods were being transferred as branch transfer but were actually moving in the course of inter State sale and thus there was evasion of tax. Check post officer was not competent to go into the nature of transaction which could only be decided in regular assessment proceedings. It was held that he over-stepped his jurisdiction to impose penalty by holding that it was evasion of payment of tax. - there is nothing illegal or impermissible for a party in so arranging its affairs that the liability to pay tax would not be attracted or that the brunt of taxation would be reduced to the minimum. In the cited authority, version of the appellant was accepted and transfers made by the company were taken to be genuine by the Sales Tax authorities. - State Counsel has not been able to demonstrate any flaw in the approach of the Tribunal which may warrant interference - no factual or legal infirmity in the impugned order of the Tribunal - Decided against Revenue.
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