2005 (9) TMI 609 - AT - VAT and Sales Tax

Summary

Issues involved:
Challenge to seizure of scrapped steel by Commercial Tax Officer under West Bengal Sales Tax Act, 1994 and refund of penalty paid for release of seized goods.

Analysis:
The petitioner challenged the seizure of scrapped steel by the Commercial Tax Officer under section 70 of the West Bengal Sales Tax Act, 1994, and sought a refund of the penalty paid for the release of the seized goods. The petitioner contended that the goods were being transported within West Bengal from Haldia to Siliguri by M/s. Soneko Warehousing Limited for the petitioner-consignee. Despite producing documents indicating the intra-state transportation, the goods were seized for not providing a declaration as required under rule 214B of the West Bengal Sales Tax Rules, 1995.

The petitioner's advocate argued that the officer was unjustified in insisting on the declaration as the documents clearly showed the goods were meant for movement within West Bengal. Reference was made to a High Court order in a similar case, emphasizing that the declaration requirement should have been dispensed with. However, the State Representative opposed this argument, citing a previous Tribunal order upholding a similar seizure.

Upon examining the facts, it was noted that the documents produced by the driver in the current case contained all necessary details regarding the transportation within West Bengal, unlike the previous case. The officer's grounds for seizure, such as the consignor being unregistered, were found to be invalid under rule 214B. The documents submitted clearly indicated the movement of goods within the state, satisfying the officer's requirement for a declaration.

The Tribunal concluded that the seizure order could not be sustained in this case, and consequently, the penalty order was also deemed invalid. The petitioner was granted the refund of the penalty amount within one month from the date of the judgment.