Undervaluation dispute under trade tax law did not justify seizure or security demand where documents accompanied the consignment.

Seizure of goods and demand of security on the basis of alleged undervaluation were found unwarranted under the U. P. Trade Tax Act where the consignment was accompanied by the relevant documents and the dispute related to the value disclosed by the assessee. The Tribunal treated the question as factual and held that any issue whether the goods could be sold at a higher price could be examined in regular assessment proceedings. On the material before it, there was no basis to sustain seizure or the security demand, and the revision was held not maintainable on the facts found.

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Issues: Whether the seizure of goods and demand of security on the ground of undervaluation was justified under the U. P. Trade Tax Act.

Analysis: The consignment was accompanied by the relevant documents, and the dispute related to the valuation disclosed by the assessee. The Tribunal held that if the goods were to be sold at a higher price, that question could be examined in regular assessment proceedings. On the material before it, the Tribunal treated the issue of undervaluation as one turning on facts and evidence, and found no basis for seizure of the goods or for sustaining the security demand.

Conclusion: The seizure and demand of security were held to be unwarranted, and the revision was not maintainable on the facts found.

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