VATAP 71 of 2009 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. VATAP No. 71 of 2009 Date of decision 23 .11.2009 M/s Varun Textile Processors ... Appellant Versus State of Punjab and others ... Respondents. CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE JASWANT SINGH Present: Mr. SS Brar ,Advocate for the appellant 1.To be referred to the Reporter or not ? 2.Whether the judgement should be reported in the Digest ? M.M.KUMAR, J. The dealer-appellant has challenged order dated 22.12.2008 passed by the Value Added Tax Tribunal, Punjab, Chandigarh (for brevity 'the Tribunal'). The Tribunal has concluded that the dealer-appellant had shown in the GR that the goods were second hand clothes and were tax free. Whereas ready-made garments were taxable at 4% as per Entry 4 of Schedule A of the Punjab General Sales Tax Act,1948. Otherwise such used clothes are covered by residuary entry as per category VII of Schedule A. If the goods were going out of Punjab then central sales tax was also chargeable. However, the dealer-appellant preferred to declare the goods as tax free in the bills as well as in the GR. Therefore, it has been rightly concluded that the goods were not covered by the proper and genuine documents and there was an attempt to evade/ avoid tax. Having heard the learned counsel we find no ground to admit the appeal as no substantive question of law would be involved. It has VATAP 71 of 2009 2 remained undisputed that the dealer-appellant has made clarification that the goods were tax free whereas they are chargeable to tax under one entry or the other. An attempt to avoid/ evade tax has been found as a fact. Accordingly, penalty of Rs. 10,00,000/- has been imposed. The appeal is wholly without merit. Dismissed. (M.M.Kumar) Judge (Jaswant Singh) 23.11.2009 Judge okg