2015 (6) TMI 47 - HC - VAT and Sales Tax

Detention of goods - Cancellation of provisional registration - Held that - Petitioner is ready and willing to deposit and/or produce the necessary Challans of payment of the aforesaid amount before the respondent No.4 and/or appropriate authority. - It is, therefore, that on deposit of the aforesaid amount, the respondent No.4 may be directed to release the goods detained under memo - Decided conditionally in favour of assessee.

Summary

Issues:
Release of detained goods, calculation of Central Sales Tax (CST) and Value Added Tax (VAT), appeal against cancellation of provisional registration, depositing necessary amount, direction to release goods.

Release of detained goods:
The petitioner sought release of goods detained by the respondents pending final assessment and appeal against cancellation of provisional registration. The respondents stated the total tax due and payable as Rs. 7,20,435, comprising CST and VAT. The petitioner, through their advocate, expressed readiness to deposit the amount and requested the release of goods. The court directed the release of goods upon depositing Rs. 7,20,435 with the appropriate authority and producing Challans as proof of payment. The deposit/payment was made without prejudice to the rights and contentions of the parties, especially the petitioner, before the Assessing Officer and the first Appellate Authority where the appeal against cancellation of provisional registration was pending.

Calculation of Central Sales Tax (CST) and Value Added Tax (VAT):
The affidavit-in-reply mentioned the calculation of CST and VAT due, totaling Rs. 7,20,435. The calculation included the value of goods, CST at 5%, freight, GP at 30%, sale value of goods, tax at 5%, and penalty at 150%. The court considered this calculation in directing the release of goods upon depositing the specified amount, ensuring compliance with tax liabilities pending final assessment and appeal proceedings.

Appeal against cancellation of provisional registration:
The petitioner had appealed against the cancellation of provisional registration, and the advocate representing them stated the readiness to deposit the necessary amount pending the appeal outcome. The court directed the release of goods upon depositing the specified amount, safeguarding the interests of the Revenue and the petitioner without prejudice to their rights during the appeal process.

Depositing necessary amount:
The petitioner expressed willingness to deposit the required amount and produce Challans as proof of payment. The court directed the release of goods upon depositing Rs. 7,20,435 with the appropriate authority and submitting Challans, ensuring compliance with tax obligations while protecting the petitioner's rights during the appeal process.

Direction to release goods:
The court ordered the release of detained goods upon the petitioner depositing Rs. 7,20,435 with the appropriate authority and providing Challans as evidence of payment. This directive was made without prejudice to the rights and contentions of the parties, particularly the petitioner, during the pending appeal against the cancellation of provisional registration and the final assessment process.

In conclusion, the petition was disposed of, and direct service was permitted, with the court's order ensuring the release of goods upon compliance with the specified deposit and payment conditions, safeguarding the interests of both parties during the ongoing appeal process and final assessment proceedings.