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of <h1>Dismissal of Challenge Against Search & Seizure under Tax Act - Petitioner Advised to Appeal</h1> <h3>Aakash Namkeen Pvt. Ltd. Versus Commissioner of Commercial Taxes, MP</h3> Aakash Namkeen Pvt. Ltd. Versus Commissioner of Commercial Taxes, MP - [1997] 105 STC 441 (MP) Issues:Challenge of search and seizure under Madhya Pradesh Commercial Tax Act, 1994.Analysis:The petitioner challenged the search and seizure conducted by the respondents under section 45 of the Madhya Pradesh Commercial Tax Act, 1994. The petitioner, engaged in the business of manufacturing and selling namkeens and sweetmeats, argued that the action was arbitrary and illegal. The petitioner contended that a committee must be constituted for investigation of tax evasion under the Act, and there was no evidence of a valid committee being formed or that the petitioner was evading tax. The petitioner approached the High Court under articles 226 and 227 of the Constitution of India, claiming no other efficacious remedy was available.The respondent, in their reply to the legal notice, stated that a committee was indeed constituted under section 45 of the Act. The Commissioner was authorized to delegate powers under the Act, and the search and seizure were conducted based on sufficient material indicating tax evasion. The Commissioner initiated proceedings against the petitioner under sub-section (6)(a) of section 45, which were pending disposal. Any order or adjudication made under this section was appealable under section 61 of the Act.The petitioner argued that the recovery of Rs. 5 lakhs from them was coercive and influenced by the respondents. However, the managing director of the petitioner had voluntarily agreed to pay the amount towards penalty or tax payable. The court noted that the matter was pending adjudication, and any opinion on the recovery should be reserved until examined by the concerned authority.The court found no merit in the petition and dismissed it without notice to the other side. The petitioner was advised to pursue the available remedy of filing an appeal under section 61 of the Act against any order passed under section 45. The court refrained from expressing an opinion on the recovery of Rs. 5 lakhs, leaving it to the authority to determine the validity of the amount recovered.
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