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TMI Blog2013 (8) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... hat he was put under any pressure or coerced to part with security. The department may have acted in a haste at the instance of complainant but that they cannot be said to have acted arbitrarily or without any authority of law - Now since the Commercial Tax Tribunal has passed the order by which the security has been reduced and that the entire amount has been deposited, no useful purpose will be served in initiating proceedings under Section 138 of Negotiable Instrument Act - Decided in favour of assessee. - Writ Tax No. - 673 of 2013 - - - Dated:- 26-7-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Petitioner : Nishant Mishra For the Respondent : C. S. C. ORDER 1. We have heard Shri Nishant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 2.30 pm on 6.6.2013. On the same day by a detention memo, for detaining the goods was issued at 3.50 pm and a show cause notice was issued at 4.00 pm, which was received by Sukhdev Singh at 4.30 pm to appear before the authority on the same day to show cause as to why goods be not seized. He submits that on the same day the authorities carrying out the inspection forcibly obtained five cheques, totalling Rs. 40 lacs as security for giving the goods in supurdgi of Shri Sukhdev Kumar. 4. Shri Nishant Mishra submits that before waiting for the date fixed for encashment of the post dated cheques, i.e. 11.6.2013, an order of seizure was passed a day earlier on 10.6.2013, by which the godown was seized and the petitioners were required to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not seized, and on the same day the petitioner was pressurised to deliver the post dated cheques of Rs. 40 lacs demonstrates that the entire action was taken in a vengeance, with malafide intentions. He submits that the department does not have authority to seize the goods without waiting for a reply to show cause notice. They have powers to survey, search and for detention of goods, if the accounts books were not found under sub section (4) and (6) of Section 45 of the Act. They, however, did not have powers to seize the goods and demand security, which was forcibly taken by way of post dated cheques, on the same day. 6. Shri Nishant Mishra does not dispute that the respondents have authority to seize the account books and to issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods seized shall be prepared by such officer and be signed by the officer and not less than two witnesses. The officer also has powers to seize the goods, where he has reason to believe that the goods found are not traced to any bonafide dealer, or the documents issued by a bonafide dealer with respect to the accompanying goods contained wrong particulars or that it is doubtful if such goods are properly accounted for by any dealer in his accounts, registers or other documents, maintained in the ordinary course of his business. He submits that admittedly the accounts books were not found at the time of search and thus the power under Section 48 (1) (ii) was exercised in seizing the goods and thereafter the goods were given in the supurdgi o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is admitted that the account books were not found at the place of business at the time of search. The petitioner no.1 knows the consequence of search and seizure, and if he signed five post dated cheques and had tendered the cheques along with a letter to the officers carrying out survey, it is difficult to believe that he was put under any pressure or coerced to part with security. The department may have acted in a haste at the instance of complainant but that they cannot be said to have acted arbitrarily or without any authority of law. 10. Now since the Commercial Tax Tribunal has passed the order on 16.7.2013 by which the security has been reduced from Rs. 40 lacs to the amount of tax paid i.e. Rs. 14 lacs and that the entire amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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