1995 (2) TMI 424 - HC - VAT and Sales Tax

Summary

Issues:
1. Seizure of goods and truck under section 12A of the Act.
2. Allegations of evasion of tax and misuse of documents.
3. Maintainability of the writ petition.
4. Challenge to the vires of section 22A(7) of the Act.

Detailed Analysis:

1. The petitioner sought a direction to release the truck and goods seized under section 12A. The petitioner alleged no evasion and claimed the seizure was unwarranted as the truck had valid documents. The Court ordered the release of goods on furnishing security but declined to interfere further, stating that the matter should be decided by the authorities. The petitioner had already furnished security, and the Court noted that the petitioner had an adequate remedy under the relevant sections of the Rajasthan Sales Tax Act.

2. The Assistant Commercial Taxes Officer suspected tax evasion based on documents produced by the petitioner. The officer recorded statements and seized the goods and truck. The petitioner's counsel argued discrepancies in dates of sale and documents, while the respondent's counsel contended that the matter should be left to the tax authorities. The Court refrained from expressing an opinion on the merits, emphasizing that the authorities should investigate further. The Court directed disciplinary action if any officer was found guilty and stated that the State would take appropriate action if documents were false.

3. The respondent raised objections on the maintainability of the writ petition, alleging false documents and misrepresentation. The Court considered the preliminary objections but ultimately dismissed the writ petition, noting that the petitioner had already replied to the notice and the matter should be resolved through the statutory remedies available under the Act.

4. A challenge was made to the vires of section 22A(7) of the Act regarding the quantum of penalty. The Court dismissed the amendment application at that stage, stating that the petitioner could challenge the vires before the Division Bench when necessary. The Court declined to grant a stay on passing a final order, emphasizing that the challenge to the vires could be pursued at a later stage.

In conclusion, the High Court dismissed the writ petition, allowing the authorities to proceed with the case under the Rajasthan Sales Tax Act. The Court emphasized the need for proper investigation by the concerned authorities and highlighted the availability of statutory remedies for the petitioner. The challenge to the vires of a specific section of the Act was deferred for future consideration before the Division Bench.