2013 (8) TMI 994 - HC - VAT and Sales Tax

Summary

Issues Involved: Challenge to seizure of goods despatched from Delhi, lack of necessary documents for consignment, maintainability of writ petition, determination of legality of goods brought into Tripura, jurisdiction of assessing authorities.

Judgment Details:

1. The petitioner challenged the order seizing goods despatched from Delhi without necessary documents for consignment meant for B.S.F and C.R.P.F canteen stores. The High Court emphasized the need for caution when sending large consignments via courier service to prevent tax evasion. The State was advised to issue instructions on the maximum quantity of goods allowed through courier to avoid tax evasion.

2. The Court held that the writ petition was not maintainable at that stage, and the petitioner should approach the assessing authorities. The legality of bringing goods into Tripura and the location of sale were factual and legal questions to be determined by the assessing authority. The petitioner was given liberty to submit all supporting documents to the Assessing Officer within 15 days, along with a bank guarantee to cover any potential liabilities.

3. The assessing authority was directed to decide on the matter within 30 days of receiving the representation and documents. The final assessment by the Officer would be binding, and encashment of the bank guarantee would depend on the Officer's decision, not on higher appellate authorities. Upon furnishing the bank guarantee, the seized goods would be released to the petitioner.

4. The High Court disposed of the writ petition with the above observations, emphasizing the importance of complying with tax regulations and providing necessary documentation for goods transported into Tripura.