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TMI Blog2019 (5) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no finding recorded by any of the authorities that any of the aforesaid conditions are not fulfilled or any of the conditions are flouted. In the instant case, it is clearly established that the goods which are purchased or sold by a registered dealers against the proper tax invoice, charging the tax plus Mandi Shulk dispatched from seller place to the cold storage on the instructions of the revisionist (purchaser) and the same are duly recorded in the register of the cold storage and the number of item namely 354 bags of Chilly was found by the (SIB) Authority, at the time of inspection held on 18.12.2014 and immediately in pursuance of the first notice issued by the (SIB) Authority, at the first stage itself, the books of accounts are produced by the Revisionist on the very date fixed, then what further remains to be placed by registered dealer - the entire proceedings namely the seizure and the consequential penalty proceedings is nothing but clearly an abuse of process of law at the hands of the respondent authorities. Rule 41 provides the challan or transfer invoice at the time of an occasion when the goods are delivered or dispatched. In the instant case, neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as conducted at the aforesaid cold storage by the Special Investigating Bureau Commercial Tax, RangeA, Agra, on 18.12.2014, where the surveying party has noticed that the stock register maintained by the said cold storage discloses an entry of deposit of 354 bags of Chilly and where the name of the present revisionist was noted. Based on the aforesaid information collected by the investigating team a notice has been issued under Section 45(1) of U.P. VAT Act by the Deputy Commissioner (SIB) Commercial Tax, RangeA, Agra dated 09.01.2015 directing therein to appear and to produce the books of accounts justifying their stand about the availability of the aforesaid 354 bags of Chilly in the said cold storage. The date was fixed i.e. 12.01.2015. The verification of the books of account, produced by the revisionist, was carried out and the (SIB) Authority has noticed that the proof with respect of purchases effected by the revisionist is duly recorded in its books of accounts. However, a report is prepared by the (SIB) Authority which was forwarded to the Assessing Authority of the revisionist and based on the said report the Assessing Authority of the revisionist has procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods contained wrong particulars or the goods are undervalued to the extent of more than fifty percent of the value of goods prevalent at the relevant time in the local market area where the said transaction had taken place, with intention to evade payment of tax, it shall pass an order imposing a penalty not exceeding forty per cent of the value of such goods or tax payable under the Act on the value of such goods, whichever is higher as he deems fit. Learned counsel for the revisionist, Sri Lokesh Mittal and Sri M.M. Rai has pointed out that in fact the goods in question were duly 'accounted for' in the regular books of account which are duly maintained by the revisionist and further submitted that it is also duly recorded in the books of account which are supposed to be maintained by the cold storage. Learned counsel for the revisionist has submitted that when the Deputy Commissioner (SIB) has issued the notice on 09.01.2015 requiring the reply on the date fixed, the revisionist has produced all the books of accounts related to the transaction namely the purchase of goods as well as the documents indicating therein that the goods are being kep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned Standing Counsel therefore, submits that in the instant case admittedly neither the challan was found nor the transfer invoice was found where as the same are prescribed under Rule 41 of the VAT Rules. Rule 41 of the VAT Rule provides the challan or transfer invoice to be prepared so as referred under Sub Section 5 of Section 21. It is further clarified in Rule 41 as to how the challan or transfer invoice to be prepared and as to what would be contained in the said challan or transfer invoice which is required at the time of goods delivered or dispatched . For the ready reference Sub Rule (1) of Rule 41 of Vat Rules is quoted hereinbelow: Rule 41........... (1) The dealer shall prepare the challan or transfer invoice referred to in subsection (5) of section 21 in three copies marked Original, Duplicate and Triplicate from a bounded book and each copy of challan or transfer invoice shall contain following particulars in respect of goods delivered or dispatched. (i) Name and address of the dealer; (ii)Name of branch or depot; (iii) Taxpayer's Identification Number (Registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spatched from seller place to the cold storage on the instructions of the revisionist (purchaser) and the same are duly recorded in the register of the cold storage and the number of item namely 354 bags of Chilly was found by the (SIB) Authority, at the time of inspection held on 18.12.2014 and immediately in pursuance of the first notice issued by the (SIB) Authority, at the first stage itself, the books of accounts are produced by the Revisionist on the very date fixed, then what further remains to be placed by registered dealer. In my view, therefore, the entire proceedings namely the seizure and the consequential penalty proceedings is nothing but clearly an abuse of process of law at the hands of the respondent authorities. So far as the contention of the learned Standing Counsel is concerned, as he has referred the provisions of Section 21 (5) of the VAT Act, in my opinion, is not relevant so far as the controversy involved in the present case. As in the instant case, admittedly the seller has send the goods on the instructions of the purchaser to the cold storage to be kept there for certain period and admittedly the seller has charged the tax whil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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