Rakesh Garg, J. - (1.) THE assessee has filed the present appeal under Section 68 of the Punjab Value Added Tax Act, 2005 (for brevity, "the Punjab VAT Act, 2005") challenging the order dated October 16, 2007 passed by the VAT Tribunal, Punjab, by raising the following substantial questions of law: (i) Whether, in the facts and circumstances of the case, an order of penalty under Section 51 of the Punjab Value Added Tax Act, 2005 could be passed when it is an admitted position that no tax was leviable on import of rice from outside the State? (ii) Whether, in the facts and circumstances of the case, when documents, on scrutiny, have been found proper and genuine, an order of penalty under Section 51 of the Punjab Value Added Tax Act, 2005, could be passed? (iii) Whether any order of penalty can be passed on the presumption that there was an attempt to evade tax?
(2.) BRIEF facts giving rise to this appeal are as under: At about 8 a. m. in the morning on April 14, 2005 Sh HPS Gotra, Excise and Taxation Officer intercepted two trucks bearing registration Nos. HR -37 -A -4808 and HR -46A -6839 loaded with rice on way to Kharar under suspicious circumstances, when he along with other staff was conducting checking under Section 51 of the Punjab VAT Act, 2005 on Mohali -Kharar road with a view to check evasion/avoidance of the tax under the Act. The checking officer spotted these trucks near Dara Studio, Mohali and followed the same. The trucks did not stop at the Balongi ICC to give information as required under Section 51(4) of the Act ibid. The checking officer overtook the abovesaid vehicles and signalled these to stop near Chawla Filling Station on Balongi -Kharar road. The drivers of the vehicles were asked to produce documents relating to the goods under transport and the forms No. VAT 12 got generated at the ICC, Balongi. Neither of the drivers could produce bill/delivery challan and form No. VAT 12 pertaining to the goods under transport in the said vehicles. The drivers stated that no bill/GR was given to them and they did not give any information regarding the import of goods at the ICC, Balongi or any other nearest ICC as they had done at the behest of the owner of the goods. The statements of both the drivers were recorded. The Excise and Taxation Officer conducting the checking had reasons to doubt that the goods were not being accompanied by proper and genuine documents as required under law and therefore, the goods were detained under Section 51(6)(b) of the Act on the following grounds: (i) The goods have been imported from Delhi by the Punjab dealer and were being taken to his business premises at Kharar via Barwala Panchkula -Chandigarh and without given any information at the ICC, Balongi or any other ICC en route. (ii) The goods were not covered by any bill/delivery challan/goods receipt as required under Section 51(2) of the Act. A notice was issued for April 15, 2005 to the owner of the goods to produce proper and genuine documents and explain the discrepancies as pointed out in the notice at Mohali office. However, Sh. Surinder Kumar Verma, proprietor of the consignee -firm appeared before the Detaining Officer on the same day, i.e., April 14, 2005 at about 10.35 a. m. at the ICC, Balongi and produced the following documents in respect of both the vehicles: 1. Bill Nos. 22435 and 22436 dated April 13, 2005 for Rs. 1,66,872 and Rs. 92,299.20 issued by M/s. Atul Kumar Anuj Kumar, Delhi in favour of M/s. Shiv Shakti Exporters, Kharar. 2. G.R. Nos. 2045 and 2046 dated April 13, 2005 of Delhi Punjab carriers from Delhi to Kharar. 3. ST XXTV A of ICC, Banur, bearing time 9:37:26 for GR Nos. 2046 and 9:39:23 for GR 2045 in respect of vehicle No. HR -37A -4808.
(3.) BILL No. 99 dated April 7, 2005 for Rs. 2,10,250 issued by M/s. Shri Sham Rice Mill, Chandoli (Varanasi) in favour of M/s. Shiv Shakti Importers, Kharar.;