2015 (1) TMI 946 - HC - VAT and Sales Tax

Seizure of articles being transported from Delhi to Tripura it is alleged that value of the goods had been fixed at a rate much higher than the market rate Held that - It is the duty of the registered transporter carrier or transporting agency to obtain sufficient numbers of Form-XXV in advance and see that they are duly and properly filled in prior to the driver entering the check-post - even when the revision petition was filed neither Form XXV was filed with the revision petition nor the bills and invoices of the goods given - what was produced was only a copy of the manifest giving the value of goods and a copy of the transit form issued by the authorities in Assam - the authority in Assam would be least concerned with the value of goods because they would only be charging transit taxes if any which would have no bearing with the value of the goods - the Commissioner even gave an opportunity which he was not required to do to the transporter to produce material before him within 7 (seven) days - even thereafter neither Form-XXV was produced nor the bills or invoices of the goods which were actually transported in the truck were produced - what was produced were the bills and invoices of Jira not related the consignment - these are invoices of Jira which had been collected at Agartala but in the petition it is mentioned that these rates reflected in these invoices were accepted by the Churaibari check-post - the action of the Officers at the check-post in seizing the goods and holding that they were being transported with a view to evade tax is justified and calls for no interference. Whether the goods were properly valued for the purpose of assessing the tax penalty etc. Held that - The petitioner has clearly mentioned that Form-XXVI wherein the value of the Jira was declared to be 106.99 was declared and accepted by Superintendent of Taxes - the rate of Jira would vary between 107/- to 121/- per kilogram and taking even the highest rate we assess the rate of Jira at 121/- per kilogram - as far as the other goods are concerned despite opportunity having been given to him has failed to produce any material as to what was the value of the goods - the value of Jira shall be taken to be 121/- per kilogram and rest of the order of the Commissioner is upheld Decided partly in favour of petitioner.

Summary

Issues Involved:
1. Legality of the seizure of goods.
2. Compliance with procedural requirements under the Tripura Value Added Tax Act.
3. Validity of the valuation of seized goods.

Issue-Wise Detailed Analysis:

1. Legality of the Seizure of Goods:
The petitioner, a transporter, challenged the seizure of goods transported through truck no. HR-74-2624 at the Churaibari check-post in Tripura. The driver produced Form-XXVI, which covered only some of the items in the truck. Upon inspection, officials found undeclared items, including PVC footwear, foot mats, stationery, electronic goods, and 10 tons of Jira (cumin-seed). The petitioner argued that the driver's failure to produce Form-XXV was unintentional and due to his unfamiliarity with the procedure. However, the court emphasized that ignorance of the law cannot be pleaded, especially by a seasoned transporter. The court upheld the seizure, noting that the petitioner failed to produce necessary documents like invoices and consignment notes, which are mandatory under Section 67 of the Tripura Value Added Tax Act.

2. Compliance with Procedural Requirements under the Tripura Value Added Tax Act:
Section 67 mandates that transporters carry records of goods, including challans, bills of sale, and prescribed declaration forms. The petitioner failed to comply with these requirements. The court highlighted that the transporter must obtain Form-XXV in advance and ensure it is duly filled before entering the check-post. The petitioner's argument that these forms should be filled at the check-post was rejected. The court found that the petitioner did not produce the required documents even after being given an opportunity by the Revisional Authority, which further justified the seizure.

3. Validity of the Valuation of Seized Goods:
The valuation of the seized goods, particularly Jira, was contested. The officials at the check-post valued the Jira at Rs. 180 per kilogram. The petitioner argued that this rate was higher than the market rate and provided invoices showing rates between Rs. 106 and Rs. 121 per kilogram. The court accepted the petitioner's evidence regarding the market rate of Jira and adjusted the valuation to Rs. 121 per kilogram. However, for other goods, the petitioner failed to provide any valuation evidence, and thus, the court upheld the original assessment by the officials.

Conclusion:
The court upheld the seizure of goods and the procedural actions taken by the officials at the Churaibari check-post, emphasizing the importance of compliance with Section 67 of the Tripura Value Added Tax Act. The court allowed the petition only to the extent of adjusting the valuation of Jira to Rs. 121 per kilogram while maintaining the rest of the order of the Commissioner. The tax, penalty, and interest were to be charged based on this adjusted rate. The writ petition was disposed of with no costs.