- (1.) This writ petition Under Article 226 of the Constitution of India is directed against the judgment and Order dated 2.11.1993 passed by Sales Tax Tribunal, Ghaziabad Bench-I, Ghaziabad whereby the Second Appeal No. 770 of 1993 (A.Y. 1992-93) was partially allowed and the penalty Under Section 13A(4) of the Uttar Pradesh Sales Tax Act (hereinafter referred to as the Act which includes Uttar Pradesh Trade Tax also) was reduced by the sum of Rs. 41,625.
(2.) The Petitioner is a public limited company and carries on the business of processing and manufacture of texturised synthetics yarn and the company was registered as Dealer Under Section 8A of the Act as well as under the Central Sales Tax Act. The company was also granted an eligibility certificate Under Section 4A of the Act on the ground of starting a new industrial Unit with effect from 2.11.1987 to 23.10.1993. The company purchased partially oriented Yarn (P.O.Y.) as raw material exclusively from Parasurampuria Synthetics Limited, Bhiwadi in the district of Alwar, Rajasthan, vide, invoice No. P.S.L./B.H.W.D./149, dated 15.5.1992 for Rs. 10, 05, 796. The yarn so purchased was of thickness of 125 deniers. According to the case of the company, the thickness of the yarn was reduced to 80 deniers and was transmitted by invoice No. 4144 dated 20.5.1992 for Rs. 1,22,166 and despatched by truck challan No. 8565/92, dated 20.5.1992 to Santosh Yarn, ChaJ Jarpur, Tanda in the district of Falzabad. The consignment transported from Noida to Tanda was intercepted and detained by Sales Tax Officer In charge, Checkpost Kolesara on 20.5.1992 and the goods were seized with a show cause notice. The company showed the cause and produced the documents but the Sales Tax Officer disbelieved the reply and imposed penalty Under Section 13A(4) of the Act amounting to Rs. 50,000, vide, Order dated 14.12.1992.
(3.) In the appeal filed by the company, the Deputy Commissioner (Appeals) Sales Tax, Ghaziabad dismissed the appeal but the Tribunal partly allowed the second appeal and reduced the penalty amount to Rs. 9,375.;