9911796707
TMI Blog1998 (4) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... he period up to December 31, 1996 were submitted and the next return was scheduled to be due on April 30, 1997. Applicant, however, paid the taxes up to the period January, 1997 in terms of the provisions of the relevant Act. 3.. On February 21, 1997, respondent No. 1, Commercial Tax Officer, Salt Lake Charge, visited the business place of applicant at 104, S.K. Deb Road along with some Inspectors of the said Charge at 11.30 A.M. They took out the files, books of accounts and documents from the racks and almirahs of applicant without disclosing their identity. After this, they obtained some pieces of plain paper from the applicant, wrote various things on these papers and asked the applicant to sign on the said papers in the manner as was directed by them. They took away the books of accounts and documents as were available at the said business place. They also took away certain other papers which were not related to the business of purchase and sale of the applicant. They did not hand over any receipt to the applicant for taking away the said books of accounts and documents from the custody of the applicant, although they were requested to grant such a receipt. Before leaving th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence as noted above and on his failure a bona fide suspicion was formed that the applicant was trying to evade payment of taxes under the 1994 Act. Thereafter, the books of accounts were seized as per provisions of law after recording the reasons therefor prior to the seizure and thereafter proper seizure receipt had been handed over to the applicant. It is denied that any assurance that books of accounts and documents would be released on making a payment of Rs. 50,000 was given to the applicant. The applicant voluntarily deposited Rs. 50,000 towards his admitted tax liability involved in the seized books of accounts. The conditions precedent to exercise jurisdiction under section 66 of the 1994 Act were duly fulfilled and hence the seizure was perfectly valid. 6. In their affidavit-in-reply, the applicants have submitted that the material on record shows that there was total non-application of mind on the part of the respondents in examining the books of accounts and seizing the same. The respondent No. 1 without looking into the books of accounts properly has made some vague allegations against the applicant regarding the sales recorded in the books of accounts. The applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-application of mind on the part of the respondents would be clear from the fact that they examined only the sale figures shown in the sales tax account register of the Works No. 2 and compared them with a red exercise book examined by them and came to the conclusion that the amount shown in the sales tax account register was less than the sales recorded in the exercise book. He submitted that this showed how carelessly the books were examined. Mr. Chakraborty submitted that the sales tax account register examined by them was referred only to the Works No. 2 whereas the exercise book examined by them was maintained by the proprietor for personal control showing cost of goods only. Hence there was no reason why these two documents should show identical figures. Mr. Chakraborty argued that, even at the time of inspection, returns for the past period had already been submitted by applicant and they were available with respondents. A mere glance through these returns would have shown that the amount of sales shown in the returns by applicant was far in excess of the amounts shown in the sales tax account register of Works No. 2 which was examined by respondents and which formed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... livery charges in the bills. If the sales tax account register Nos. 1 and 2 and the exercise book had been read as a whole by respondent No. 1, he could not have actually come to the conclusion that there was any discrepancy. 12.. On going through the records, the conclusion is inescapable that the examination of the books of accounts by respondents when they visited the place of business of applicant was careless and perfunctory. They examined some books and on such examination came to the conclusion that there was discrepancy between the figures recorded in an exercise book and a sales tax account register. On this basis they came to believe that the dealer is attempting to evade payment of sales tax. It is admitted that at the time when they had visited the place to examine the tax status of the applicant the returns filed by the applicant were already in their possession and it is only expected that before starting an enquiry they should have been aware of the tax status of the applicant as revealed in the returns already filed by him and available with the Revenue. There was no reason in that case why they should have accepted the amounts shown in the sales tax account regis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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