Prior reasons to believe are essential for valid seizure of goods from cold storage under sales tax law.

Search and seizure of notified goods from a cold storage under the Bengal Finance (Sales Tax) Act, 1941 and the West Bengal Sales Tax Act, 1954 required prior reasons to believe that the goods had been transported in contravention of the sales tax law. Although a cold storage could fall within the statutory place contemplated for seizure, its owners had no legal duty under the Cold Storage (Licensing and Regulation) Act, 1966 to verify the hirers' import permits. The authorities acted on suspicion alone, and a later investigation could not cure the absence of a lawful pre-seizure basis. The seizure was therefore invalid.

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Issues: Whether the search and seizure of notified goods and notified commodities from the cold storage were valid in the absence of pre-existing reasons to believe that the goods had been imported in contravention of the sales tax laws.

Analysis: The statutory power under section 14A of the Bengal Finance (Sales Tax) Act, 1941, and the corresponding provision in section 7 of the West Bengal Sales Tax Act, 1954, could be exercised only when the authority had reasons to believe, before the seizure, that the goods stored in a godown, warehouse or other place had been transported in contravention of the relevant provisions. The cold storage was held to be a place within the meaning of those provisions, but the owners of the cold storage had no legal duty under the Cold Storage (Licensing and Regulation) Act, 1966, to verify whether the hirers had valid import permits. The material available showed that the authorities acted on suspicion, and the subsequent investigation could not cure the absence of prior lawful basis for the seizure. A roving enquiry after seizure could not validate an earlier seizure made without requisite satisfaction.

Conclusion: The seizure was invalid, and the applicants succeeded.

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