2024 (9) TMI 547 - SCH - VAT / Sales Tax

Supreme Court Reverses High Court Tax Order; Seized Goods to be Released Upon Rs. 6 Lacs Bank Guarantee.

M/s CHETAK LOGISTIC LIMITED Versus THE COMMISSIONER COMMERCIAL TAX, LUCKNOW

The SC allowed the Civil Appeal, reversing the HC's directive for a 50% tax deposit. It ordered the release of seized goods upon the appellant providing a ... Challenge to seizure order - direction of High Court that 50% of the disputed tax should be deposited within three weeks from the date of the order - HELD THAT:- This appeal has been pending since 2011, the consequence of which is that further proceedings pursuant to the show cause notice for violation of Section 52 of the Uttar Pradesh Value Added Tax Act, 2008 have not been taken up. In view of the above, the respondent- State Department are directed to initiate the proceedings, if any and pass a final order within a period of three months from today. In view of the fact that the goods were released pursuant to the order passed by this Court, the bank guarantee need not be renewed after three months. Appeal disposed off. The Supreme Court heard a Civil Appeal arising from a Commercial Tax Revision case. The appeal was filed against the order of seizure dated 29.07.2010. The High Court directed the appellant to deposit 50% of the disputed tax within three weeks. The Supreme Court allowed the appeal, directing the release of goods upon furnishing a bank guarantee of Rs. 6 lacs. The appeal has been pending since 2011, prompting the State Department to initiate proceedings within three months. The Civil Appeal is disposed of.