Way-bill obligation cannot justify seizure where the rule was not in force and transport documents were duly produced.

Seizure of goods and penalty were treated as unsustainable where the goods were supported by bill of lading, invoices, packing lists, bill of entry and consignment note, and the check-post had been informed with endorsement of documents. The tribunal noted that the seizure occurred in February 1999, while rule 215A(1)(d) requiring a way-bill for out-of-State dealers came into force only on 1 April 2000. On the scheme of rule 211, the necessary port/check-post documents had already been produced, so there was no legal obligation at the material time to obtain the later way-bill facility for movement through West Bengal. The seizure was therefore illegal, and the penalty and revisional orders, together with the bank guarantee, were ordered to be released.

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Issues: Whether seizure of goods and consequential penalty were sustainable when the goods were supported by transport documents, the relevant way-bill mechanism for out-of-State dealers was not yet in force, and the goods were intended for movement outside the State through West Bengal.

Analysis: The goods were covered by the bill of lading, invoices, packing lists, bill of entry and the consignment note, and the record showed that the commercial tax check-post had been informed and the documents endorsed. The tribunal accepted that the seizure was made in February 1999, whereas the provision relied upon by the revenue for out-of-State dealers seeking way-bills, namely rule 215A(1)(d) of the West Bengal Sales Tax Rules, 1995, came into effect only from 1 April 2000. On the scheme of rule 211, the documents required at the port/check-post had been produced and endorsed, and the petitioner had no legal obligation at the material time to obtain the later introduced way-bill facility for transportation through West Bengal to Delhi.

Conclusion: The seizure was illegal, the penalty and revisional orders could not stand, and the goods and bank guarantee were ordered to be released.

Ratio Decidendi: A seizure cannot be sustained for non-production of a way-bill when the statutory facility imposing that obligation on out-of-State dealers was not in force on the date of seizure and the goods were otherwise supported by bona fide transport documents duly presented at the check-post.

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