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TMI Blog2009 (2) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial Tax Tribunal, Jhansi in appeal No. 07/2009. The proceeding giving rise to the revision arises out of seizure and detention order passed in respect of the goods which were being carried by two Trucks having numbers as UP 78A/9167 and UP 78AT/8063. The applicant is a registered dealer under the U.P. VAT Act having its TIN No. as 09152201460. The applicant is manufacturing sprinkler under the name and style of Jain Sprinkler System at Jalgaon (State of Maharashtra). The aforesaid goods were being transported through Agra-Mumbai Tempo Service. The goods were intercepted on its onward journey from Jalgaon to Lucknow and were intercepted by the Mobile Squad, Jhansi. A show cause notice dated January 4, 2009 was issued. It was replied. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he seizure and demand of security is justified? 3. From the seizure memo it is apparent that the goods were seized as the authority was of the view that there is lack of full and true disclosure of the goods which were being transported. In the delivery memo under the heading Description of Goods it was written as under:- Complete set of Jain Sprinkler System Consisting off QUICK CONNECT PIPE 90 X 2.5 600 QUICK CONNECT PIPE 90 X 2.5 600 Q. CONNECT RUBBER SEAL 600 4. The authorities below on physical verification found that the goods were in the form of H.D.P.E. Pipe and Joint Clamps. The authority took the view that the description of the goods found physically in the aforesaid trucks do not match with the description ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x vs. S/s Purwar Sales Corporation 2008 NTN (Vol. 38) 18 also. The goods were seized by the authority concerned on the ground that Makka Poha (maize flakes) is not a Kachri but Namkeen which was taxable. The case of the dealer, on the other hand was that Makka Poha is nothing but Kachri and therefore, it is an exempted item. This Court set aside the seizure order on the ground that whether Makka Poha is a Kachri or Namkeen can be gone into by the Assessing Authority while framing the assessment order. The submission of learned Counsel for the applicant is that the controversy involved herein is also akin to the controversy which was involved in the case of Purwar Sales Corporation (supra) . It appears that the only objection raised by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er irrigation system is not complete without the pipes and pipe is one of the most important item without which sprinkler system cannot function. The Bureau of Indian Standards, New Delhi has specifically given a specific code as IS 14151 to sprinkler pipes. The case of the dealer is that the pipes which were found are meant for use, are sprinkler system. At this stage, it was also submitted that the sprinkler system is not liable to tax and is an exempted item under the Entry relating to the agricultural implements. 9. According to the department, the pipes which were being carried were ordinary pipes and they can be used in other purposes also. The said position is being disputed by the learned Counsel for the applicant. Be that as it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilized for other purpose. At the most a suspicion or doubt is created but the same shall not authorize the officer concerned to pass an order of detention in respect of the registered dealer. Power of seizure and detention should be exercised very cautiously and only in appropriate cases and not lightly or in a routine manner. The said power has been conferred on the authority concerned to ensure the prevention of tax evasion and the same should not be exercised as a handle to harass a bonafide dealer. 12. It may be added that the finding recorded by this Court in the judgment is only tentative finding and it shall be open to the authority concerned to examine the matter on the basis of the material on record. On the facts of the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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