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M/S MODERN LOCK MANUFRACTURING COMPANY versus THE COMMISSINER OF TRADE TAX, U.P. LUCKNOW

High Court of Judicature at Allahabad

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M/S Modern Lock Manufracturing Company v. The Commissiner Of Trade Tax, U.P. Lucknow - SALES/TRADE TAX REVISION No. 1202 of 2006 [2006] RD-AH 16696 (22 September 2006)

 

This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).

HIGH COURT OF JUDICATURE OF ALLAHABAD

COURT NO.22

TRADE TAX REVISION NO.1202 OF 2006

M/s Modern Lock Manufacturing Company,

Ramson House, Bannda Devi, Aligarh.       ....Applicant

Versus

The Commissioner, Trade Tax U.P., Lucknow.   .Opp.party

***************

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 5th June, 2006 relating to the assessment year 2005-06, by which Tribunal has confirmed the seizure of the goods and directed the release of the goods on furnishing of security to the extent of Rs.19,200/-.

With the consent of both the parties, present revision is being disposed of at this stage.

Brief facts of the case are that on 11.02.2006 Trade Tax Officer (Mobile Squad), Ghaziabad  intercepted vehicle no.UP-83-D/9992. On the inspection, driver of the vehicle produced the bill no.1456 dated 07.02.2006 and builty no.14350, dated 07.02.2006 of M/s United Freight Carriers. The documents, which were produced relates to 9 boxes of iron locks sold to M/s Prime Sales, 121/6 Dashmesh Nagar, Ludhiana for Rs.18,876/- while on physical verification  Brass handle and Brass locks were found.  Since on physical verification, different goods were found and there was no documents available relating to the goods, which were found, goods were detained and show cause notice was issued.  In reply to the show cause notice, it was stated that on 07.02.2006 vide invoice no.1455,   9 boxes of Brass handles and Brass locks were sold to M/s Modern Trading Company, 555, Katra Safed, Amritsar and was despatched to Amritsar against builty no.78993 dated 07.02.2006 of Green Roadways, Cover, Kuta, Aligarh and inadvertently due to the mistake of marka, goods were exchanged. Trade Tax Officer, (Mobile Squad), Ghaziabad had not accepted the plea of the applicant and had seized the goods and demanded the security at Rs.24,000/-. The order of the Trade Tax Officer (Mobile Squad) has been confirmed by the Deputy Commissioner (Enforcement). Applicant field appeal before the Tribunal. Tribunal by the impugned order, allowed the appeal in part. Tribunal has confirmed the seizure of the goods but has reduced the amount of security from Rs.24,000/- to Rs.19,200/-.  Tribunal has held that at the time of checking, documents relating to the goods were not found. The bill and builty related to the 9 boxes of Iron locks while on physical verification Brass handle and Brass locks were found.  Tribunal further held that before the Trade Tax Officer, (Mobile Squad) and before the Deputy Commissioner (Enforcement), the books of account have not been produced for verification.

Learned counsel for the applicant submitted that the Tribunal has wrongly observed that the books of account have not been produced before the Trade Tax Officer (Mobile Squad) and before the Deputy Commissioner (Enforcement) while the books of account were produced for verification.  He submitted that only on account of human error in place of Iron locks, Brass handle and Brass locks were handed over to the transport company. He submitted that since the goods were entered in the books of account, the seizure of the goods was unjustified. Learned Standing Counsel submitted that admittedly, at the time of inspection, documents relating to the seized goods were not available and the documents related to the Iron locks, while on physical verification Brass handles and Brass locks were found. He submitted that in the garb of iron locks valuing Rs.18,876/-, applicant was transporting the Brass handles and Brass locks, which was valuing Rs.65,704/-, as per their own showing. He submitted that it is wrong to say that the books of account were produced before the Trade Tax Officer (Mobile Squad) and before Deputy Commissioner (Enforcement).

Having heard learned counsel for the parties, I have perused the order of Tribunal and the authorities below.

On the facts and circumstances of the case, I find that there was a prima-facie case for the seizure of the goods. Admittedly, at the time of inspection documents which were produced related to the Iron locks while on physical verification Brass handle and Brass locks were found. On inspection, no documents relating to the Brass handles and Brass locks were produced before the Trade Tax Officer, (Mobile Squad). Therefore, there was a valid reason to infer that the goods were being transported  without proper documents. The explanation of the applicant that inadvertently on account of human error, goods were exchanged, may be considered at the time of penalty proceedings. Order of the Trade Tax Officer, (Mobile Squad) and the Deputy Commissioner (Enforcement)  do not reveal that the books of account were produced for verification. This aspect of the matter may also be considered at the time of penalty proceedings. Thus, on the facts and circumstances of the case, in my view, no interference is called for in the order of the Tribunal.

In the result, revision fails and is accordingly, dismissed.

Dt.22.09.2006

R./


Copyright

Reproduced in accordance with s52(q) of the Copyright Act 1957 (India) from judis.nic.in, indiacode.nic.in and other Indian High Court Websites

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