2013 (3) TMI 578 - HC - VAT and Sales Tax

Summary

Issues:
Seizure of goods under section 76 of the West Bengal Value Added Tax Act, 2003 based on violation of section 73 - Validity of seizure - Competence of assessing officer in determining nature of transaction.

Seizure of Goods under Section 76:
- On January 3, 2008, goods of the writ petitioners were seized by the Sales Tax Officer due to reasons to believe that iron ores, a taxable commodity, were imported in contravention of section 73 of the Act.
- Tribunal found violation of section 73 and upheld the legality of the seizure under section 76.
- High Court directed Tribunal to reconsider the matter and consider additional documents submitted by petitioners.
- Tribunal, in its subsequent order, reiterated that the seizure was lawful due to non-compliance with mandatory provisions of section 73 and rule 100 of the VAT Rules, 2005.

Competence of Assessing Officer:
- Appellant relied on a Supreme Court judgment stating that questions of fact from transactions must be determined by authorities under the Act.
- Appellant argued that Tribunal overstepped in determining the nature of the transaction, a role reserved for the assessing officer.
- Respondent contended that assessing officer's role is limited to penalty proceedings post-seizure, where the transaction's nature will be decided.
- High Court clarified that assessing officer's jurisdiction is under sections 45 and 46, not in cases of seizure under section 76.
- The final decision on the nature of the transaction rests with the officer under section 77, not with the Tribunal's opinion expressed for the purpose of determining the legality of the seizure.

Conclusion:
- High Court found the appellant's argument regarding the competence of the assessing officer to be without merit.
- Tribunal's opinion on the legality of the seizure does not bind the officer under section 77, who will decide based on evidence and in accordance with the law.
- The petition was disposed of, emphasizing that the assessing officer is the appropriate authority to make the final decision on the nature of the transaction.
- Urgent certified copies of the order were directed to be provided to the respective advocates upon application.