Surya Prakash Kesarwani, J. - (1.) HEARD Sri B.K. Pandey, leaned standing counsel for the applicant, Sri Suyash Agarwal, Sri Vishvajit, Sri Ashok Kumar, Sri M.M. Rai, Sri Shubham Agarwal and Sri Gaurav Mahajan, learned counsels for the respondents. All these revisions involve common question of law as under: "Whether under the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in deleting the penalty levied under section 54(1)(14) of the Uttar Pradesh Value Added Tax Act, 2008 -
(2.) BEFORE I proceed to discuss the facts involved in each cases, it would be appropriate to summarize the law with regard to penalty under section 54(1)(14) of the Act. Legal provisions: Section 50 of the Act provides for import of goods into the State by road against a declaration form. Section 51 of the Act provides for import of goods into the State by rail, air, river or ropeway. The contravention of section 50 or 51 attracts penalty under section 54(1)(14) of the Act. Rule 54 of the Uttar Pradesh VAT Rules (for short, "the Rules") provides for establishment of check -post which was amended and a new of rule 54 was substituted by the Uttar Pradesh Value Added Tax (Second Amendment) Rules, 2010 published vide Notification No. K.A. NI -2 -241/XI dated 4th February, 2010. Rule 55 of the Rules provides for inspection of goods in transit. Rule 56 provides for issue and submission to declaration forms and matters relating thereto. The relevant declaration form as referred in rule 54 is form No. 38.
(3.) CONTROVERSY involved in the present revisions are with regard to levy of penalty under section 54(1)(14) of the Act for contravention of the provisions of section 50 of the Act. Under the circumstances, it is necessary to reproduce the provisions of section 50, section 54(1)(14) of the Act and rule 54 of the Rules and form XXXVIII as under: S. 50. Import of goods into the State by road against declaration. - - (1) Any person (hereinafter in this section referred to as the importer) who intends to bring, import or otherwise receive, into the State from any place outside the State any goods other than the goods named and described in Schedule -I in such quantity or measure or of such value, as may be notified by the State Government in this behalf, in connection with business, shall either obtain the prescribed form of declaration, in such manner as may be prescribed, from the assessing authority having jurisdiction over the area, where his principal place of business is situated or, in case there is no such place, where he ordinarily resides or shall download from official website of the department in such manner as may be prescribed: Provided that where the importer intends to bring, import or otherwise receive such goods otherwise than in connection with business, he may, at his option, in the like manner obtain the prescribed form of certificate. (2)(a) Where such goods are imported, brought or otherwise received into the State by registered dealer, he shall carry such declarations or documents as may be prescribed. (b) Where the goods are imported, brought or otherwise received into the State by a person otherwise than in connection with business, he may likewise carry such certificates and documents as may be prescribed. (3) The driver or other person in -charge of any vehicle carrying any goods referred to in the preceding sub -sections shall stop the vehicle when so required by an officer authorized under sub -section (1) of section 45 or sub -section (1) of section 48, and keep in stationary for so long as may be considered necessary by the officer authorized under sub -section (1) of section 45 or sub -section (1) of section 48, as the case may be, and allow him to search the vehicle and inspect the goods and all documents referred to in the preceding sub -sections and shall, if so required, give his name and address and the names and addresses of the owner of the vehicle and of the consignor and the consignee of the goods. S. 54. Penalties in certain cases, - -(1) The assessing authority, if he is satisfied that any dealer or other person, as the case may, has committed the wrong described in column 2 of the table below, it may, after such inquiry, if any, as it may deem necessary and after giving dealer or person reasonable opportunity of being heard, direct that such dealer or person shall, in addition to the tax, if any, payable by him, pay by way of penalty, a sum as provided in column (3) against the same serial no. of the said table: R. 54. Establishment of check -posts. - -(1)(a) The owner, driver or any other person in -charge of the vehicle or vessel shall, in respect of such goods carried in the vehicle or the vessel as are notified under or referred to in sub -section (1) of section 50 and exceeding the quantity, measure or value specified in the notification therein, carry with him the following documents - - (i) form of declaration for import in form XXXVIII or certificate in form XXXIX hereinafter in these rules referred to as declaration or certificate, as the case may be, in duplicate, duly filled and signed by the purchaser and seller of the goods or where goods are transferred otherwise than by way of sale, by consignor and consignee of the goods with status and address; (ii) Cash memo, bill, invoice or challan; (b) The owner, driver or any other person in -charge of the vehicle or vessel shall in respect of all other goods carried in such vehicle or vessel carry such documents as may be prescribed by the Commissioner in duplicate. (2)(a) A declaration or certificate - - (i) in respect of which a report has been made under sub -rule (9) of rule 56 or sub -rule (8) of rule 57, or (ii) which is declared as obsolete and invalid by the Commissioner under sub -rule (13) of rule 56 or sub -rule (10) of rule 57, shall not be valid with effect from the date of the report or the date from which it is so declared, as the case may be, for the purpose of sub -rule (3). (b) A certificate whose period of validity as specified in sub -rule (4) of rule 57 has expired shall not be valid for the purposes of sub -rule (3). (3) The owner of the truck or vessel or the transport agency, forwarding agency or clearing agents, as the case may be, shall deliver to the consignee, while delivering the consigned goods, the duplicate copy of the declaration or certificate, as the case may be. (4) The owner, driver or any other person in -charge of the vehicle or vessel shall carry the trip sheet in form XL in respect of goods referred to in clause (a) of sub -rule (1). Separate trip sheets shall be submitted for goods meant for different destinations. (5) The Commissioner may from time to time issue instructions with regard to the procedure to be followed regarding import of goods from out of State and submission of declaration or certificate before assessing authority. Form XXXVIII Department of Commercial Taxes, Government of Uttar Pradesh[See rule 54(3)(a) of UPVAT Rules/2008]Form of declaration for import I,..............., the authorised signatory of the above named dealer, do herby declare that the goods noted above are being imported/received/brought by the aforesaid dealer. Signature of authorised signatory;