Goods and Service TaxArticle·7 August 2026
Penalty needs intent
By J the App
Executive Summary
The Allahabad High Court, by its judgment dated 20 July 2026, set aside penalty proceedings initiated under Section 54(1)(14) of the U.P. VAT Act, holding that the Revenue had failed to establish any intention to evade tax.
The Court ruled that penalty cannot survive in the absence of mens rea, particularly where statutory forms were duly used and transactions were fully disclosed.
Background
The dispute arose from penalty proceedings initiated under Section 54(1)(14) of the U.P. Value Added Tax Act, 200...
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