Invalid delegated authority in tax seizure renders the seizure and consequential penalty action without jurisdiction.

A seizure under the West Bengal Sales Tax Act, 1954 was held invalid because the Inspector of Commercial Taxes who effected it had not been validly delegated the statutory power. The delegation order of 24 July 1987 showed the Assistant Commissioner as the competent authority, so the jurisdictional prerequisite for seizure was absent. The defect went to the root of the proceedings, and the seizure, penalty notices, and any consequential penalty orders were quashed. The bank guarantee was directed to be released in favour of the applicants.

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Issues: Whether the seizures of the disputed consignments and the consequential penalty notices were liable to be quashed for want of jurisdiction in the Inspector of Commercial Taxes who effected the seizures.

Analysis: The seizure was made under section 7 of the West Bengal Sales Tax Act, 1954. The order of delegation dated 24 July 1987 did not confer the power of seizure on the Inspector of Commercial Taxes; on the contrary, the delegation showed that the Assistant Commissioner was the competent authority. Once the authority effecting the seizure had not been validly empowered, the prerequisite jurisdiction for seizure was absent. The defect went to the root of the proceedings, and the consequent penalty notices and any final orders in those proceedings could not survive.

Conclusion: The seizures were invalid for want of delegated authority and were quashed, along with the penalty notices and any consequential penalty orders. The bank guarantee was directed to be released in favour of the applicants.

Ratio Decidendi: A seizure made under a taxing statute by an who has not been validly delegated the statutory power is without jurisdiction and is liable to be quashed, along with consequential penal action.

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