1964 (6) TMI 53 - AT - VAT and Sales Tax

Summary

Issues:
1. Validity of seizure of books of account and records.
2. Compliance with section 14(3) of the 1941 Act and rule 70A of the Bengal Sales Tax Rules.
3. Existence of reasons to suspect evasion of tax.

Analysis:

The judgment by the Appellate Tribunal of West Bengal Taxation Tribunal dealt with the challenge against the seizure of books of account and records by the Commercial Tax Officer. The first issue raised was the lack of recorded reasons prior to the seizure, as required by the relevant rules and section 14(3) of the 1941 Act. The Tribunal found that the reasons were recorded after the seizure, rendering it invalid. However, it proceeded to examine other points raised by the applicant.

The second issue concerned the compliance with section 100(4) of the Code of Criminal Procedure and rule 70A of the Bengal Sales Tax Rules. The Tribunal emphasized that while compliance with section 100(4) was not mandatory in every case, efforts should be made to adhere to the provisions. It was noted that the seizure in question lacked any mention of a witness, rendering it invalid due to non-compliance with rule 70A.

The final issue revolved around the existence of reasons to suspect tax evasion. The Tribunal found discrepancies between the recorded reasons and the respondent's statement, indicating a lack of valid reasons to suspect tax evasion. It concluded that the Commercial Tax Officer had not acted in accordance with the law and declared the seizure invalid, ordering the return of the seized documents.

In the final decision, the Tribunal allowed the application, quashed the seizure of books of account and records, and directed the return of the seized items to the applicant within seven days. No costs were awarded in the matter, and the application was disposed of accordingly.