Jharkhand High Court Upholds Businessman's Conviction For Deliberate Tax Evasion Through Goods Misdescription
The Jharkhand High Court has upheld the conviction of a firm partner for deliberately misdescribing goods to evade commercial tax under the Bihar Finance Act.
Justice Pradeep Kumar Srivastava found that the discrepancies in the description of goods were deliberate and intended to evade tax. The court observed:
"Perusal of the material exhibits reveals that there are some discrepancies with regard to goods which are clearly apparent and these discrepancies with regard to goods has been intentionally made to evade commercial tax."
The case arose from a complaint by the Assistant Commercial Tax Commissioner, Special Area, Ranchi, alleging that the firm had suppressed sales and made incorrect entries in statutory Form F to evade tax.
The prosecution alleged that the firm misdeclared mustard oil as vanaspati oil to pay less tax and used undervalued entries and unauthorised forms.
The trial court convicted the petitioner under the Bihar Finance Act but acquitted him under the IPC. Challenging the conviction, he questioned his responsibility for the firm's affairs, the prosecution sanction and the investigation. The high court found no reason to interfere with the concurrent findings.
"The learned appellate Court in para-12 of its judgment has very minutely gone through the documentary evidence brought on record and has mentioned each of the discrepancies found with regard to goods to evade the commercial tax which makes it clear that the firm of the accused has played foul play to evade commercial tax which is punishable under Bihar Finance Act."
Dismissing the criminal revision, the high court upheld the conviction and sentence. It also cancelled the petitioner's bail and directed him to surrender before the trial court within two months to serve the remaining sentence. If he fails to surrender, the trial court must take steps to secure his arrest and detention.
For Petitioner: Advocate Deepankar
For State: APP Sanat Kumar Jha