Padam Motors faces Vigilance inquiry

Dushyant Singh Pundir

Tribune News Service

Chandigarh, December 30

The Excise and Taxation Department, UT, has marked a Vigilance inquiry against Padam Motors, a dealer of Chevrolet and Renault cars, to investigate the movement of vehicles and process of evading the taxes.

During an inspection conducted by the Excise and Taxation Department on the premises of the car dealer on May 23, 2013, it was found that there was no purchase or sale bill of 351 cars parked in the warehouse and the showroom of the dealer. Of the 351 vehicles, 158 Chevrolet and 164 Renault cars were found at the company godown and 29 Chevrolet cars were found in the showroom.

The department had seized the vehicles under Section 46 (6) p of the Punjab Value Added Tax, 2005. Later, the documents of 222 vehicles were produced before the authorities and these were released. The remaining 129 vehicles were not released as no genuine documents were produced by the dealer.

However, 129 cars were given to the dealer on sapurdari (custody), which are now missing as the dealer had closed the premises in the UT. The department then imposed a penalty of Rs1,73,98,265 for tax evasion on the dealer.

The dealer filed an appeal before the Deputy Excise and Taxation Commissioner (Appeals). The appeal was dismissed after holding a series of hearings, giving proper opportunity to the dealer. However, the appellate authority, while disposing of the appeal, also recommended an inquiry through an independent agency.