JUDGMENT

Manisha Batra, J.

The instant appeal has been filed under Section 68 of the Punjab VAT Act, 2005 (for short "PVAT Act") against the orders dated 06.12.2016 and 03.12.2019 respectively passed by the Punjab VAT Tribunal (for short "Tribunal").

2. Brief facts of the case relevant for the purpose of disposal of this appeal are that the appellant is a dealer duly registered under the Madhya Pradesh VAT Act at Indore. It is a manufacturer of suspension tubes/units and its related components. It has been regularly supplying machinery and machinery parts to Indian Railways. Tenders are being floated in the normal course of its business by Diesel Loco Modernisation Works (for short "DMW"), Patiala Railway Department for purchase of suspension bearing tubes and accessories and other components. The appellant participates in the tenders floated by DMW and supplies machinery etc. against confirmed purchase orders. It is submitted that after duly participating in the tender, the appellant received a purchase order dated 13.09.2012 from DMW for supply of 460 sets of suspension bearing tubes and accessories of 10 components for TM 4907. Since the manufacturing of this huge quantity of suspension bearing tubes took time, therefore, the manufactured products were being supplied in intervals. Vide invoice No.264 dated 12.10.2013 for a sum of Rs.21,90,733/-, the appellant had transported 20 sets of suspension bearing tubes from Indore to DMW, Patiala. Goods receipt No.35724 dated 12.10.2013 was also issued by Inter-State Carrying Corporation in this regard. The appellant got the machinery/goods insured from National Insurance Company Limited on 12.10.2013 vide policy Annexure A-7. The goods were even got inspected by officials of RITES which is an engineering consulting company of Government of India and letter (Annexure A-4) had been issued in this regard. The machinery so transported was not for sale or trade as the same was plant and machinery parts to be installed at the Indian Railway Workshop at Patiala. The machineries/goods were accompanied by proper and genuine documents. It was submitted that without knowledge and consent of the appellant, the driver of the truck bearing No.PB-13R-4069 in which the machinery was carried, loaded another consignment of Taramira which was unloaded at Khanna. The Excise & Taxation Officer, Khanna checked the vehicle at the time when Taramira was being unloaded at a godown at Khanna. The driver on demand showed invoice No.12 dated 13.10.2013 and goods receipts issued by South Goods Carrier and also produced Form No.57232 prescribed by Madhya Pradesh Government relating to Taramira. The driver also produced invoice No.264 issued regarding transportation of the machinery by the appellant to DMW along with GR and copy of insurance policy etc. However, by making a false allegation that the driver had not produced any documents regarding transportation of the machinery by the appellant, and further alleging that the driver had not reported the goods of the appellant at the ICC while entering State of Punjab, the machineries were detained and case of appellant was forwarded to Assistant Excise and Taxation Commissioner for taking action under Section 51 (7) (c) of the PVAT Act.

3. The appellant submitted reply to notice issued under Section 51 (7) (c) and produced copies of the account books and also clarified that the goods were not for further sale but they were parts of machinery/machinery to be installed at DMW, Patiala and there was no attempt to evade tax. It was also submitted that the invoice and GR etc. of the said goods had been produce