Bona fide suspicion requirement defeats a careless seizure of tax records based on selective and incomplete examination.

A seizure of books of account and documents under sales tax law is invalid unless the authority forms a bona fide suspicion of tax evasion on proper and mindful examination of available records. Here, the suspicion was based on a careless, selective comparison that ignored filed returns and other relevant sales records, so the enquiry was treated as roving and fishing and the legal basis for seizure was absent. The seizure was quashed, and the directions for return of the seized articles and adjustment of the deposited amount were upheld.

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Issues: Whether the seizure of books of accounts and documents was valid in law for want of bona fide grounds to suspect tax evasion.

Analysis: The seized records were examined in a careless and perfunctory manner. The recorded discrepancy was drawn from selective comparison of documents without considering the returns already filed and available with the revenue. The material before the seizing authority showed that the returns disclosed sales figures higher than the figures relied upon for forming suspicion, and the existence of another sales register was overlooked. The enquiry was therefore treated as a roving and fishing enquiry made without proper application of mind, and the basis for a bona fide suspicion of evasion was found to be absent. The claim that the monetary payment was coerced was not proved conclusively.

Conclusion: The seizure of the books of accounts and documents was invalid and was quashed. The direction for return of the seized articles and adjustment of the deposited amount was upheld.

Final Conclusion: The application succeeded in part, with relief granted against the seizure and consequential directions for restoration of the seized materials and adjustment of the deposited sum.

Ratio Decidendi: A seizure under the sales tax law cannot stand unless the seizing authority forms a bona fide suspicion of tax evasion on a proper and mindful examination of the available records; a careless or selective enquiry based on incomplete appreciation of the assessee's books and returns is insufficient.

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