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226 Goods & Services Tax Cases - Reports [Vol. 1 transaction is required to be considered as inter-State sale, which would not be assessable to sales tax. In support of his submission he has placed reliance on a Division Bench judgment of this Court in the case of State of Punjab v. Himachal Government Timber Depot [1985] 58 STC 265 and argued that according to clause 3 of the agreement dated 1-12-1994 (A-1), the Haryana Roadways has undertaken to pay CST in addition to fabrication charges. The submission appears to be that once it is clear between the parties that the transaction is inter-State, no tax under the PGST would be leviable. On a query by the Court, learned counsel has not disputed that as far as the dealer-appellant is concerned, it has to pay 4 per cent tax either under the PGST or under the CST. 10. We have thoughtfully considered the submissions of the learned counsel. There are categorical findings recorded by the Tribunal that the agreement dated 1-12-1994 (A-1) stipulated fabrication of bus bodies on the chassis which were supplied by the Haryana Roadways to the dealerappellant. A fixed amount of price was to be realised for each of the bus body to be fabricated on the chassis and no material for fabrication of bus body was to be supplied by the Haryana Roadways. Accordingly, the Tribunal on facts has concluded that there is no other possible construction except to infer that there was sale within the State of Punjab, which was liable to tax especially when the dealer-appellant had obtained ‘D’ Forms from Haryana Roadways as is mandatory in case of sale made to Government department which is chargeable to tax at lower rate. 11. On the issue of inter-State sale, the Tribunal has opined that even if the contention raised by the dealer-appellant is accepted and it was treated as an inter-State sale on account of movement of goods from Punjab to Haryana, still the fact remains that the tax was assessable at the rate of 4 per cent, which has been charged by the respondent State. Accordingly, the Tribunal has concluded that no useful purpose would be served by remanding the matter for fresh assessment, especially when the dealerappellant did not show the transaction to be inter-State sale. Therefore, we are of the view that there would be no tax effect on the dealer-appellant in the facts and circumstances of the present case. Accordingly, while leaving the question of law open, we dismiss the appeal. 12. No other issue has been raised. 13. As a sequel to the aforesaid discussion, the appeal fails and the same is dismissed. ■■ GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 102 A B C D E F G
2010] Vardhman Industries Ltd. v. State of Punjab (Punj. & Har.) 227 A B C D E F G [2010] 1 GST 227 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Vardhman Industries Ltd.* v. State of Punjab M.M. KUMAR AND JASWANT SINGH, JJ. VATAP NO. 12 OF 2009 DECEMBER 7, 2009 PENALTY - Assessee was engaged in manufacturing and sale of iron and steel goods - It was entitled to tax exemption under Act for a period of seven years with effect from 27-3-2000 to 26-3-2007 - Assessee sold certain goods to consignee ‘M’ vide invoice dated 26-3-2007 and earmarked for loading in truck which was reported at ICC center on 30-3-2007 - Required documents as envisaged under sub-section (2) of section 51 were presented at ICC center, however, goods were detained by officer-in-charge under sub-section (6)(a) of section 51 by doubting genuineness of transaction/documents as arrival and reporting of vehicles at ICC center had been after four days of date of invoice - It was, therefore, found that invoices were ante dated to evade tax - Matter was, thereafter, reported to designated officer, who after conducting an enquiry, held that there was an attempt to evade tax and, accordingly, exercising power under clause (b) of sub-section (7) of section 51 imposed penalty vide order dated 13-4-2007 - Whether since sale invoice/bills had been issued on 26-3-2007 and goods were earmarked and goods receipts were issued to vehicles for their onward transmission to consignee on same date, mere delayed movement of goods would not be sufficient to conclude that there was an attempt to evade payment of tax - Held, yes - Whether therefore, penalty levied on assessee was to be deleted - Held, yes [Section 51(7)(b) of the Punjab Value Added Tax Act, 2005] FACTS The assessee was engaged in the manufacturing and sale of iron and steel goods. It was registered under the Punjab General Sales Tax Act, 1948 and Central Sales Tax Act, 1956. It had been granted exemption from payment of tax for a period of seven years with effect from 27-3-2000 to 26-3-2007 under the Act. The assessee sold goods to consignee ‘M’ vide invoice dated *In favour of assessee. GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 103
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