The Patna High Court, recently quashed a First Information Report registered to level offenses under sections 420 and 409 read with section 120/34 of the Indian Penal Court, in view of the relevant provisions of the Bihar VAT Act.
In the instant case, an FIR was lodged against the petitioners for the breach of instructions directing them to maintain register of outgoing and incoming built of goods and making entry of token number. The Department alleged that they have done all these with an intention to evade tax. It was further alleged that they deliberately concealed necessary documents substantiating the valid transfer of goods at the time of inspection. On this basis, the goods were seized and an FIR was instituted against the petitioners.
Challenging the FIR, the petitioners contended that the department imposed a penalty of three times of the original value of goods on them on the very same day of seizure goods, which was later deposited with them by the petitioners. By virtue of section 81(5) of the BVAT Act, no person shall have proceeded against the offenses prescribed under the relevant provisions of BVATA, if the total amount of tax, interest, penalty or attempted to be evaded is less than fifty thousand rupees. Here, the penalty imposed against the petitioners was an amount less than fifty thousand rupees and hence, the FIR lodged against the petitioners is without authority of law.
While accepting the contentions of the petitioners, the Court quashed the FIR by pointing out that the allegations made in the FIR constitutes breach of various provisions under the BVATA, which itself prescribes for punishment.The Court was of the opinion that since the penalty imposed on the petitioner was an amount less than fifty thousand, any further proceedings against them in illegal under section 81(5) of the Act.
Read the Full Text of the order here.
[googleapps domain=”drive” dir=”file/d/0B3j3oXdY53gVUklpZ0Nud0JDR1E/preview” query=”” width=”640″ height=”480″ /]
