2006 (5) TMI 465 - AT - VAT and Sales Tax

Summary

Issues:
Seizure of goods under section 70 of the West Bengal Sales Tax Act, 1994 and imposition of penalty under section 71 of the Act.

Analysis:
The petitioner, a registered dealer under the West Bengal Sales Tax Act, 1994, challenged the seizure of goods and penalty imposition. The petitioner ordered jeera from a supplier and obtained necessary documents for entry into West Bengal. The goods were verified and allowed entry by the authorities. Subsequently, the petitioner secured another order for the same goods and decided to send them to a different buyer. However, the vehicle carrying the goods was intercepted, and the goods were seized based on a discrepancy in the date mentioned in the challan-cum-delivery note. The Commercial Tax Officer imposed a penalty despite the petitioner's explanation of a clerical error in the date.

The petitioner argued that the error in the date mentioned was a clerical mistake and should not have led to the seizure and penalty. The Tribunal noted that all other documents indicated the goods entered West Bengal on the same day as endorsed in the way-bill. The suspicion raised by the seizing officer was deemed unfounded, considering the surrounding circumstances and contemporaneous documents. The Tribunal emphasized that suspicion should be reasonable and not based on remote possibilities or imagination.

The Tribunal found the suspicion entertained by the Commercial Tax Officer to be unreasonable and invalid in the context of the case. Consequently, the Tribunal allowed the application, setting aside the order of seizure and penalty imposition. The respondents were directed to refund the penalty paid by the petitioner within three months from the date of the order. The Technical Member also concurred with this decision, leading to the resolution of the dispute in favor of the petitioner.