High Court of Judicature at Allahabad
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M/S Sharma & Co v. Commissioner Of Trade Tax,U.P. Lucknow - SALES/TRADE TAX REVISION No. 2436 of 2004  RD-AH 1449 (19 November 2004)
Court no. 55
Trade Tax Revision no. 2436 of 2004.
M/S Sharma & Co., Kanpur Nagar. ... Revisionist.
Commissioner of Trade Tax, U. P. Lucknow ... Respondent.
Hon'ble Rajes Kumar J.
Present revision under Section 11 of U. P. Trade Tax Act (hereinafter referred to as ''Act') is directed against the order of Tribunal dated 14.10.2004 arising from the seizure proceeding under Section 13-A.
Applicant is a registered dealer under the U. P. Trade Tax Act as well as under the Central Sales Tax Act. Ten Drums of Light Liquid belonging to the applicant were detained on 25.5.2004 from Vehicle no. U. P. 53 E-5929 on the ground that the Challan relating to the goods was doubtful and a Show-cause-notice was issued. Applicant produced Challan-book. However, authority concerned was of the view that the size of the Challan found alongwith the goods was bigger than the Challan-book produced and on this ground, goods was seized and a sum of Rs.32,000/- demanded towards security in cash for release of the goods. Application under the proviso 13-A(6) was rejected. Applicant filed appeal before the Tribunal, which was also rejected.
Heard Counsel for the parties.
Learned Counsel for the applicant submitted that the seizure of the goods is illegal and inasmuch as, entry of goods was available in the books of account and the Challan which was found alongwith the goods was the regular Challan. Learned Standing Counsel submitted that the Challan, which was alongwith goods, was not the regular Challan and it was of the bigger size than the Challan of bill book and therefore, seizure of the goods was justified.
In my opinion, question involved is a disputed question of fact which requires further investigation. Seizure proceeding is a summary proceeding, therefore, it may not be appropriate at this stage to examine the rival contention of the parties, which may be considered and adjudicated in the penalty proceeding. Applicant is a registered dealer under the U. P. Trade Tax Act, therefore, on the facts and circumstances of the case, I am of the view that the goods may be released on furnishing of security demanded by the authorities below in the form other than cash or Bank guarantee instead of cash.
With the aforesaid observations, the revision is disposed of with the direction that in case if the applicant furnishes security of the amount demanded in the form other than cash or Bank guarantee, the seized goods may be released forthwith. Assessing Authority is also directed to conclude the consequential proceeding within a period of two months.
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