The High Court of Punjab and Haryana, in a VAT case, recently held that the penalty can’t be imposed if attempt to evade tax is not proved. M/s. Punjab Wool Syndicate, the appellant was making sale to Government Department all over India as the supply order was given by the Additional Deputy Inspector General of Police, CRPF, Jalandhar and the driver had produced 5 documents before the computer center at ICC but VAT-XXXVI could not generate and at the time of checking, apart from 5 documents two invoices No. 526 and 527 dated 12.7.2006 and GR Nos. 9411 and 9412 were also produced.
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