2000 (7) TMI 942 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether an offence under the Assam Finance (Sales Tax) Act, 1956, is a cognizable offence and liable to be investigated under the Code of Criminal Procedure, 1973.
2. Jurisdiction of police authorities to make seizures on suspicion of evasion of sales tax.
3. Applicability of the Code of Criminal Procedure for offences under the Assam Finance (Sales Tax) Act, 1956, without sanction from the Commissioner of Sales Tax.

Detailed Analysis:

1. Cognizability of Offences under the Assam Finance (Sales Tax) Act, 1956:
The court examined Section 27 of the Assam Finance (Sales Tax) Act, 1956, which delineates the cognizability and bailability of offences under the Act. Sub-section (2) of Section 27 explicitly states that all offences punishable under the Act are cognizable and bailable. This provision overrides any contrary stipulations in the Code of Criminal Procedure, 1898, thereby permitting police officers to investigate offences under the Act as they would for cognizable offences without requiring a magistrate's order.

2. Jurisdiction of Police Authorities:
The appellant contended that the police had no jurisdiction to seize documents on suspicion of tax evasion, especially when departmental authorities had set aside the notice requiring production of accounts. The court clarified that Section 31 of the Act grants the Commissioner of Sales Tax the authority to summon and inspect documents, and to seize them with a magistrate's search warrant. However, this does not negate the police's power to investigate cognizable offences under Section 27(2) of the Act.

3. Applicability of the Code of Criminal Procedure:
The appellant argued that the Code of Criminal Procedure should not apply to offences under the Assam Finance (Sales Tax) Act without the Commissioner's sanction. The court referred to Section 4(2) of the Code of Criminal Procedure, 1973, which mandates that all offences under any law other than the Indian Penal Code should be investigated and tried according to the Code, unless a specific procedure is provided by that law. The court noted that the Assam Finance (Sales Tax) Act does not provide a specific procedure for the trial of offences, thus making the Code applicable. Furthermore, Section 27(1) of the Act requires the Commissioner's sanction only for the court to take cognizance of an offence, not for the police to investigate.

Conclusion:
The court concluded that offences under the Assam Finance (Sales Tax) Act, 1956, are indeed cognizable and bailable, allowing police officers to investigate such offences without a magistrate's order. The powers granted to the Commissioner under Section 31 do not preclude the police from acting under Section 27(2) of the Act. Consequently, the appeal was dismissed with no order as to costs.