2012 (4) TMI 585 - HC - VAT and Sales Tax

Summary

Issues involved: Seizure of goods imported in the State of U.P. due to absence of import declaration Form -38 as per Section 50 of the U.P. Value Added Tax Act, 2008.

Summary:
The consignment of goods imported in the State of U.P. from Kolkata was detained on 31.3.2012, leading to the seizure of goods on 2.4.2012 after a show cause notice. The revisionists filed a representation under Section 48 (7) of the Act, which partially reduced the cash security demanded. Unsatisfied, they appealed to the tribunal, resulting in dismissal on 18th April 2012. Subsequently, a revision was filed under Section 58 of the Act challenging the orders.

The goods were seized for not having the required import declaration Form -38 as mandated by Section 50 of the Act. Despite the absence of Form -38 during the initial check, the revisionists submitted the form on 2.4.2012, explaining that it was inadvertently left behind despite being obtained on 27.3.2012. The genuineness of the submitted Form-38 was not disputed. The purpose of issuing a show cause notice under Section 50 (4) is to provide an opportunity for the concerned party to rectify any discrepancies found during inspection before goods are seized.

Referring to a previous case, it was established that if the necessary documentation, like the import declaration Form, is produced in response to a show cause notice before the seizure order is passed, the seizure of goods and demand for security are not justified. The current case aligns with this precedent. Therefore, as the authorities did not consider the impact of the submitted Form-38, the order of seizure was deemed legally unsustainable and was set aside.

Consequently, the impugned orders from 2.4.2012, 31.3.2012, and 18.4.2012 were overturned, directing the immediate release of the goods without any security requirement. The revision was allowed.