[Entry Tax Evasion] Punjab & Haryana High Court Says Provisions Of IPC Cannot Be Invoked Since VAT Act Does Not Provide For Registration Of FIR

Punjab and Haryana High Court has held that since the provisions of the VAT Act do not provide for the registration of the FIR and the said Act is a Code in itself, the provisions of the IPC also cannot be invoked.

The Bench comprising Justice Jasjit Singh Bedi was dealing with a petition under Section 482 CrPC for quashing of the FIR registered under Sections 420/120-B IPC and Section 4 of Punjab Tax on Entry of Goods into Local Areas Act, 2000 against the petitioner, accused of issuing fake bills to Narinder Singh for evading entry tax on furnace oil brought to Punjab from Haryana.

Petitioner argued that no offence under the IPC was made out and even if the allegations as levelled in the FIR were taken to be true, no criminal offence could be said to be made out, since if anybody enters into the State of Punjab from any other State through an unauthorised passage to evade tax, then only penal provisions of penalty etc. are provided under the VAT Act and that too if the person was apprehended at the spot along with the goods.

He added that at best, it was a case of civil nature as was provided under the Punjab VAT Act. Even otherwise, the petitioner was not arrested at the spot and the allegations against him are that he was in connivance with the arrested accused Narinder Singh. As per the provisions of the Act, a person without documents or with no genuine documents carrying the articles in the goods vehicle is liable to be punished with penalty of 30% of the value of the goods.

State counsel on the other hand contended that an offence indeed is made out, the investigation stood completed and the report under Section 173 CrPC was filed as per which the accused were found cheating the Government by evading payment of tax.

After considering submission of both parties, the court noted that there is no provision for registration of an FIR in matters of alleged evasion of tax and the provisions of the VAT Act only provide for mandatory penalty. As per the provisions of the Act, a person without documents or with no genuine documents carrying the articles in the goods vehicle is liable to be punished with penalty of 30% of the value of the goods.

Further, the court noted that if a special provision has been made qua a particular subject then the said subject is excluded from the general provisions.