Section 138

Allahabad High Court while dismissing a petition of the U.P. state Secretary said that in provisions of Section 129 it is well settled that the levy of tax and penalty cannot be based upon the presumption, especially in cases where the goods were accompanied by a tax invoice and E-way bill.

The matter before the Delhi High Court was the Revision Petition filed by the man convicted under Section 138 of the Negotiable Instruments Act. He had taken a loan of Rs 15 lac from the complainant in the following manner

Cheques are often used in various transactions in business life. It is a negotiable instrument which is widely used for making payments in business. With the aim of developing confidence in the efficacy of banking operations and giving credibility to such instruments, penal provisions