1973 (11) TMI 64

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....ot at Jullundur through Messrs. Central Goods Transport Corporation, Calcutta, on 29th June, 1970. At the Shamboo barrier in Patiala District on the vehicle being checked by the Taxation Inspector on duty on 6th July, 1970, there was found some discrepancy between the value of the goods as given in form ST XXIV, which was Rs. 50,000, and the invoices and other documents, which showed the value as Rs. 1,15,518.25. For this discrepancy, the goods were seized and were released only on payment of Rs. 7,000. This was done under section 14-B of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act). Sub-section (8) of section 14-B of the Act is to the following effect: "Where the declaration made under sub-section (3) is f....

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.... officer ordering the confiscation shall give the person affected option to pay in lieu of confiscation- (a) in cases where the goods are taxable under this Act, in addition to the tax recoverable, a sum of money not exceeding one thousand rupees or double the amount of tax recoverable, whichever is greater................. " From the above it is clear that the two provisions were Pari materia. Their Lordships of the Supreme Court after considering entry 54, List II, of the Seventh Schedule to the Constitution, came to the conclusion that such a seizure is not permissible and is beyond the jurisdiction of the State Legislature. This is what was observed: "But, in our judgment, the power to confiscate goods carried in a vehicle cannot ....