2002 (12) TMI 590

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....pellant under section 29-A(2) of the Act. As per an interim order passed in this case, the respondent got release of the goods detained as per the impugned notices. Later the learned single Judge allowed the writ petition holding that the detention of the goods under section 29-A for the alleged suppression in freight charges is not justified. According to the learned single Judge the remedy available to the appellants is provided under section 28-A of the Act. The learned Government Pleader appearing for the appellants submits that the learned single Judge was not justified in holding that section 29-A of the Act is not available for the appellants to detain the vehicle and the goods if they suspect evasion of tax on the ground of underval....

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....r section 28-A of the Act. This is the view taken by the learned single Judge also. A division Bench of this Court in S.B. Supari Centre v. Assistant Commissioner (Assessment) Thrissur (judgment dated September 10, 1998 in W.A. No. 1065 of 1997 and connected cases) considered the question whether the check-post authority is entitled to detain goods on the ground of undervaluation under section 29-A(2) of the Act. It was held that section 29-A(2) can be invoked by the check-post authority while the goods are in transit if the check-post authority, prima facie, believe from the undervaluation of the goods that the same was done with a view to evade the payment of tax. In other words, undervaluation of the goods and a consequent attempt to eva....

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....8-A. Purchase of goods to prevent undervaluation.-(1) The assessing authority or any other officer empowered in this behalf by the Government who is satisfied that any dealer with a view to evade payment of tax, shows in his accounts, sale or purchase of any goods at prices lower than the prevailing market price of such goods, shall have the power to purchase such goods at a price at ten per cent above the purchase value or the value disclosed by any principal or agent in the case of goods received on consignment basis plus transporting charges and entrust such goods for sale to the Kerala State Civil Supplies Corporation Limited or Kerala State Marketing Federation Limited or to any such public distribution system. (2) Any person aggrie....