9911796707
TMI Blog2000 (12) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... also required to transfer its manufactured products from Bhilad, where it has its factory to its main office at Mumbai. 2.. By this petition under article 226 of the Constitution of India, the petitioner-company seeks quashing the impugned orders dated April 26, 2000 (annexure E) and May 17/19, 2000 (annexure I) passed by the Sales Tax Officer, Valsad, respondent No. 1 in purported exercise of powers under sections 48A and 41B of the Gujarat Sales Tax Act (hereinafter referred to as "the local Act") read with section 9(2) of the Central Sales Tax Act, 1956. The Sales Tax Officer, Valsad, respondent No. 1 has invoked his jurisdiction under section 41B and under section 48A for making provisional assessment and for that purpose has made a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such period or periods as he thinks fit so however that the total period shall not in any case exceed one year." 4.. Learned counsel Shri N.V. Anjaria appearing for the petitioner-company, assails the impugned action of the Sales Tax Officer, Valsad, of initiating the proceedings of provisional assessment under section 41B and the attachment of the properties under section 48A of the Act. It is contended contending that only because the petitioner-company is sending its manufactured goods from its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Products Mfg. Co. reported in [1986] 62 STC 181 (Bom). 7.. Learned Assistant Government Pleader Shri Kodekar appearing for the Sales Tax Department supports the action of the sales tax authority. Attention of the court is invited to the contents of the reply affidavit filed on behalf of the concerned Sales Tax Officer, Valsad. On behalf of the department, it is stated that search was conducted of the office of the petitioner-company at Bhilad and search was also conducted at its head office at Mumbai by Maharashtra sales tax authority. In the course of search conducted at Bhilad, it was found that certain transactions described as branch transfers were not such but they were pre-determined sales. In the garb of branch transfers consignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. The decision of the division Bench of this Court in the case of Batliboi Co. Ltd. [2000] 119 STC 583, on which heavy reliance is placed, is distinguishable on facts. In that case, the sales tax authority which had taken the action had failed to produce material to justify its action of provisional assessment and attachment of properties of the dealer. The division bench took note of the fact that in the reply affidavit, in that case the Sales Tax Officer had merely stated thus: "As a very large amount of tax was involved and regular assessment of the petitioner was likely to take time, he had decided to make provisional assessment." This was hardly a sufficient ground as to infer formation of reasonable opinion for making a provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised. In such circumstances, the petitioner can approach the higher authorities for challenging the action of the Sales Tax Officer on permissible grounds. This is not a case where it can be held that the sales tax authority has no material or information with it to form a reasonable belief of evasion of tax. The action of provisional assessment and attachment of the property of the petitioner cannot be held to be an action without justification in law. 10.. We, therefore, do not find any legal infirmity in the impugned action of provisional assessment and attachment of the property of the petitioner. 11.. At the time of considering prayer for interim relief, we did not find any justification to keep under attachment the movable prope ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
