AJAY KUMAR MITTAL, J. - (1.) This appeal has been filed by the State of Punjab under Section 68 of the Punjab Value Added Tax Act, 2005 (in short "the Act") against the order dated 1.12.2015 (Annexure A -3) passed by the Chairman, Value Added Tax Tribunal, Punjab, Chandigarh (hereinafter referred to as "the Tribunal") in VAT Appeal No. 219 of 2015, claiming the following substantial questions of law: - (i) Whether the order passed by the Ld. VAT Tribunal is sustainable in law? (ii) Whether the order passed by the Ld. VAT Tribunal is sustainable in law when in the present case, the respondent had intentionally made an attempt to evade the tax by adopting the modus operandi as discussed in the foregoing paragraphs? (iii) Whether the Ld. Tribunal had rightly allowed the appeal of the Respondent when an attempt to evade the tax is proved on the basis of facts and documents available on record?
(2.) Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. It is mandatory for every taxable person under Section 51(2) of the Act to cover the transactions of sale and purchase, whether inter -state or intra state sale with goods receipt, a trip sheet or a log book, as the case may be, and a sale invoice or bill or cash memo or delivery challans containing such particulars, as may be prescribed in respect of such goods meant for the purpose of business. During the course of checking under Section 51(2) of the Act, the Excise and Taxation Officer, Mobile Wing, Bathinda, intercepted vehicle bearing registration No. HR -57 -4097 loaded with TMT Bar from Mandi Gobindgarh to Jalalabad. On asking, the driver of the said vehicle had produced the following documents before the Detaining Officer: - (i) Invoice No. 19 dated 7.5.2013 issued by M/s Om Shanti Steel Industries, Mandi Gobindgarh, in favour of M/s Vikram Enterprises, Jalalabad for 3910 Kgs of TMT Bars amounting to Rs. 1,68,245/ - including VAT charged. (ii) GR No. 12849 of Khanna Calcutta Transport Co. GT Road, Khanna. (iii) Invoice No. 786 dated 7.5.2013 issued by M/s Aar Kay Industries, Mandi Gobindgarh in favour of M/s Baldev Krishan and Sons, Jalalabad, in respect of 6080 Kgs of TMT Bars amounting to Rs. 2,64,809/ - including excise duty and VAT. (iv) GR No. 12850 dated 7.5.2015 of Khanna Calcutta Transport Co., GT Road, Khanna, and (v) Self generated E -trip slip No. XXXIV -D (Intra State slip) covering the goods against invoice No. 786.
(3.) According to the appellants, the taxable person had not issued excise invoice in respect of 3910 Kgs of TMT Bar nor any information by way of e -trip as required under Rule 64 -B of the Punjab Value Added Tax Rules was furnished. Accordingly, the goods were detained and notice was issued. However, the goods were got released on furnishing of bank guarantees of Rs. 37,875/ - and Rs. 12,625/ - totalling Rs. 50,500/ -. Appellant No.3 vide order dated 16.5.2013 (Annexure A -1) imposed the penalty of Rs. 50,500/ - under Section 51(7)(b) of the Act. Feeling aggrieved, the respondent filed an appeal before the Deputy Excise and Taxation Commissioner (Appeals) who vide order dated 27.10.2014 (Annexure A -2) upheld the order, Annexure A -1, and dismissed the appeal. Against the order, Annexure A -2, the respondent filed an appeal before the Tribunal. The Tribunal vide order dated 1.12.2015 (Annexure A -3) allowed the appeal and deleted the penalty of Rs. 50,500/ -. Hence, the present appeal by the appellants.;