1990 (7) TMI 321 - HC - VAT and Sales Tax

Summary

Issues:
1. Alleged seizure of documents and records by tax authorities without providing copies to the petitioner.
2. Interpretation of provisions in section 41 of the Tamil Nadu General Sales Tax Act, 1959 regarding seizure and retention of documents.
3. Petitioner's request for obtaining photo copies/xerox copies of the seized documents.

Analysis:
1. The petitioner alleged that tax authorities seized documents and records related to their business without providing copies, hindering their defense in penalty proceedings. The petitioner sought the return of seized documents or copies thereof to understand and address any discrepancies.

2. The court examined section 41 of the Tamil Nadu General Sales Tax Act, 1959, which empowers officers to require dealers to produce documents and seize them if tax evasion is suspected. The provision allows for retention of seized documents for examination and proceedings under the Act, with a provision for permission to retain beyond thirty days up to ninety days. The court noted that the purpose of seizure and retention is crucial, and documents may be retained longer for examination or proceedings.

3. The petitioner's counsel did not dispute the power to retain documents beyond ninety days but emphasized the need for copies to safeguard the petitioner's defense. The court agreed that the petitioner should have access to the contents of seized documents to address any issues effectively. Therefore, the court directed the tax authorities to allow the petitioner to obtain photo copies/xerox copies of the seized documents at the petitioner's cost. The petitioner was instructed to approach the Deputy Commercial Tax Officer for this purpose, with the officer required to facilitate the copying process promptly.

In conclusion, the court granted the petitioner's request for obtaining copies of the seized documents, holding the petitioner liable for the cost of preparing xerox/photo copies. The judgment aimed to ensure the petitioner's ability to understand and respond to the seized documents, thereby safeguarding their defense in the penalty proceedings.