1997 (11) TMI 503 - AT - VAT and Sales Tax

Summary

Issues:
1. Validity of seizure of consignment of "Corial Lacquer F.M."
2. Imposition of penalty under the West Bengal Sales Tax Act, 1994.

Analysis:

1. Validity of Seizure:
The applicant challenged the seizure of the consignment of "Corial Lacquer F.M." on the grounds that no permit was necessary for its importation into West Bengal as it was not a notified or specified good. However, the Tribunal had previously determined that "Corial Lacquer F.M." was included in Schedule IV of the 1994 Act, making it obligatory to obtain a permit for its importation. The Tribunal upheld the validity of the seizure based on this classification.

2. Imposition of Penalty:
The applicant argued that the maximum penalty imposed was excessive, considering that there was no intention to evade tax and the circumstances surrounding the importation without a permit. The applicant contended that there was a misconception regarding the necessity of a permit due to past importations without objection. The Tribunal acknowledged that ignorance of the law is not a defense but emphasized that such circumstances should be considered in determining the penalty amount. Referring to the principles laid down in the case of Hindustan Steel Ltd. v. State of Orissa [1970] 25 STC 211, the Tribunal reduced the penalty from Rs. 57,500 to Rs. 30,000, considering the applicant's misconception and the nature of the violation as a first-time offense.

In conclusion, the Tribunal allowed the application in part, reducing the penalty imposed by the Commercial Tax Officer to Rs. 30,000. The orders of the respondents were modified accordingly, and no costs were awarded.