Seizure for alleged under-invoicing fails where the revenue lacks cogent evidence of undervaluation.

Under the West Bengal Sales Tax Act, 1994 and the West Bengal Sales Tax Rules, 1995, the intercepting authority could verify the description, quantity, weight and value of goods and seize a consignment only where there was a legally sustainable basis to suspect a violation. Here, the allegation of under-invoicing was not supported by cogent documentary evidence and remained a mere surmise. As no acceptable material showed that the goods were actually under-valued at the relevant time, the seizure could not be upheld and was liable to be set aside in favour of the assessee.

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Issues: Whether the seizure of the consignment on the ground of alleged under-invoicing was valid in law.

Analysis: The Tribunal held that the authority had power under the West Bengal Sales Tax Act, 1994 and the West Bengal Sales Tax Rules, 1995 to intercept the vehicle, verify the description, quantity, weight and value of the goods, and seize the goods where there was a legally sustainable basis for suspecting violation. In the present case, however, the Revenue did not produce cogent documentary evidence to show that the goods were in fact under-valued at the relevant time. The allegation of under-invoicing remained unsupported by acceptable material and was treated as a mere surmise. On that basis, the seizure could not be upheld.

Conclusion: The seizure was held to be invalid and liable to be set aside, in favour of the assessee.

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