TMI Blog2015 (9) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... t checking on roadside in exercise of powers conferred under section 51 of Act cannot delve into question of nature of item and rate of tax applicable thereto – No error could be pointed out in approach of Tribunal which may warrant interference – No merit in appeal – Decided against revenue. - V. A. T. Appeal No. 142 of 2013 (O&M) - - - Dated:- 24-4-2014 - AJAY KUMAR MITTAL AND JASPAL SINGH JJ. Jagmohan Bansal, Additional Advocate-General Punjab, for the appellants. 1. This appeal has been preferred by the State under section 68 of the Punjab Value Added Tax Act, 2005 (in short, the Act ) against the order dated January 10, 2013, annexure A6, passed by the Value Added Tax Tribunal, Punjab (in short, the Tribunal ), in Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the goods mentioned on the documents did not match with the actual goods, the covering documents could not be accepted to be genuine and proper and also there was evasion of tax, because inverters were taxable at the rate of 12.50 per cent whereas the UPSs were taxable at the rate of four per cent. The driver of the vehicle could not explain the position. The goods were detained under section 51(6)(a) of the Act for verification from the books of account of the dealer. Notice was issued to the owner to appear before the detaining officer on May 1, 2007 along with their books of account. The Assistant Excise and Taxation Commissioner (AETC) after examining the documents and the entire record imposed a penalty of ₹ 7,54,726 under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancelling the penalty as the dealer had transported inverters and not UPSs. The dealer was, thus, liable to pay tax at the rate of 12.5 per cent. whereas the tax on the UPSs was leviable at the rate of four per cent. 5. After hearing learned counsel for the appellant-State, we do not find any merit in the contention. 6. The Tribunal while cancelling the penalty vide order dated January 10, 2013, annexure A6, had held as under: Mr. K. L. Goyal, learned senior advocate appearing on behalf of the appellant-dealer, submitted that while entering into the territory of Punjab, the driver of the vehicle has voluntarily reported the goods at the ICC, Shambhu (Import) and in view of Goyal Motor Parts, Bhudhlada v. State of Punjab [2011] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. 23. In view of the above, we hold that the goods in question sold by the appellant fulfil all the conditions of an UPS and hence they are taxable at the rate of four per cent. In Goyal Motor Parts, Bhudhlada s case [2011] 38 VST 159 (P H), the assessee had claimed UPS taxation at four per cent. whereas the assessing officer levied it at 12.5 per cent. The DETC (A), while relying on the reports of technical experts held that the goods in question are UPS and taxable at four per cent. On further appeal, the Tribunal brushed aside the reports of the technical experts of the Engineering Department of IIT and the Punjab Engineering College, who categorically opined that the goods in question were UPS. It has held that the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly inverters and not UPS. It is only the Assessing Authority who can decide this question. On being determined the nature of goods, the rate of tax as applicable thereto would be decided. The officers carrying out checking on the roadside in exercise of powers conferred upon them under section 51 of the Punjab Value Added Tax Act, 2005 cannot go into the disputed question of taxability. Consequently, the orders passed by both the authorities below are set aside and let the AETC, ICC, Shambhu (Import), District Patiala, Punjab, to refer the matter to the Assessing Authority of M/s. Shri Durga Enterprises, Bharat Nagar, Near PNB, Ferozepur Road, Ludhiana, to look into the transaction and take appropriate action, if required. The Assessing aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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