M/S. Guljag Industries vs Commercial Taxes Officer on 3 August, 2007
Even assuming that there is no mens rea non compliance of
statutory provisions would itself be sufficient to impose penalty. Penalty gets
attracted as soon as there is contravention of statutory provisions. Intentions of
the parties committing such violation is wholly irrelevant. The modus operandi
adopted by the assessee itself indicates the mens rea, as held by Hon'ble the
Supreme Court in Guljang Industries v. Commercial Tax Officer, (2007) 30
PHT 300 (SC). On facts it was concluded that Pure Desi Ghee in loose form
was loaded in vehicle No.HR-38-C-2186 from Sirsa, Haryana and the goods
were on their way to Hamira, Kapurthala, Punjab. The goods were meant for
trade. Two sets of documents were prepared by the owner, for a single
transaction, deliberately in a clandestine manner in order to evade tax. One set,
for account books and the other for the transit. If the truck was not checked
there would have been loss of revenue. The DETC (Appeals) by a well
reasoned order upheld the order passed by the lower authority and reached the
conclusion that there was a definite attempt to evade tax. It was held to be a
clever device to arm the persons accompanying the goods/vehicle with duly
filled Form VAT D-3 prescribed under the Haryana VAT Act so that in case
goods are checked within Haryana the same can be produced before the
checking officer on the way. One fact which glares us in the face is that the
transaction was not reported at the ICC set up on the border by the State of
Punjab. A Division Bench of this Court in its oft quoted judgment in M/s Mool
Chand Chunilal reported in (1977) STC 40-238 P&H has held as follows:-