STATE OF PUNJAB Vs. OM SHANTI STEEL INDUSTRIES

JUDGEMENT

(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: -

(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: -

(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.