2005 (2) TMI 807 - AT - VAT and Sales Tax

Summary

Issues: Challenge to seizure of goods and penalty order passed by the Commercial Tax Officer.

Analysis:
1. Seizure of Goods and Penalty Order: The petitioner imported goods without an endorsed way-bill, leading to interception by the Commercial Tax Officer. The petitioner argued that the way-bill was produced within 48 hours, making the seizure and penalty unlawful. The State Representative contended that the entry without an endorsed way-bill violated the law. The Tribunal found the entry without an endorsed way-bill to be a violation of the law, upholding the seizure of goods. However, the Tribunal allowed the release of the goods upon furnishing a guarantee of Rs. 1,00,000, with 50% to be paid in cash and the remaining 50% in a bank guarantee.

2. Legal Precedents: The State Representative cited previous decisions of the Tribunal to support the contention that the entry without an endorsed way-bill constituted a violation of the law. The Tribunal considered these precedents in reaching its decision to uphold the seizure of goods in the present case.

3. Release of Goods: The Tribunal granted the release of the seized goods upon the petitioner furnishing a guarantee as specified. The petitioner was also given the liberty to challenge the penalty proceeding before the appropriate forum. The case was disposed of without any order as to costs, concluding the matter.

In conclusion, the Tribunal upheld the seizure of goods due to the violation of the law concerning the entry without an endorsed way-bill. However, it allowed the release of the goods upon the petitioner providing a specified guarantee. The petitioner was also given the opportunity to challenge the penalty proceeding before the appropriate forum.