TaxTMI 
TaxTMI 
2005 (3) TMI 735
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.... Taxes of Barpeta Road and as it would be evident from the seizure memo dated March 17, 2003 the grounds of seizure were stated as follows: "1. The dealer was carrying by truck No. RJ-07G-4874 Assam chikni "supari" which costs Rs. 60 per kg. on average whereas, he has shown the same as Assam "supari" in his Bill Nos. 20, 21, 19 dated March 17, 2003 showing the cost at Rs. 12.52 per kg. on average such goods are under-valuation. 2.. The dealer claimed that the dispatch note was not compulsory as per judgment given by the honourable Gauhati High Court in which case the road challan should have been duly countersigned by the concerned Superintendent of Taxes and which was absent in this case. Oral. 3.. Further the dispatch n....
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....rovision of the Act which could have some nexus with the power of seizure and levy of penalty is to be found in section 46(2)(b) and (c) of the Act. Reading the provisions of section 46(2)(b) of the Act, learned counsel has contended that the power of seizure can be exercised only if the goods in question are found not properly accounted for or if the authority has reason to suspect that evasion of tax payable under the Act may take place in respect of the goods. Placing the provisions contained in sub-clause (2)(c) of section 46, learned counsel for the petitioner has contended that the power to impose penalty can be exercised after giving of a reasonable opportunity and only in situations where the carrier or the bailee of the goods fail ....
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....eference to the total quantity as well as the variety thereof, a mere dispute with regard to the prices mentioned in the bills/invoices will not make the same unaccounted for. The necessary conditions precedent to the exercise of power of seizure and levy of penalty, therefore, according to learned counsel for the petitioner, is non-existent in the present case. Learned counsel has further argued that the other grounds mentioned in the seizure memo for taking the view that the goods were not accounted for, i.e., that the road challans and despatch notes were not countersigned and filled up are not valid requirements of the law inasmuch as there is no provision in the Act which requires the road challans to be countersigned and further this ....
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....thereof is ascertainable, the same should not lead to an inference that the goods have been properly accounted for, unless the sale price thereof is also correctly mentioned in the invoices. As in the instant case the supari in question was grossly under-valued disclosing an attempt at evasion of taxes, learned Additional Advocate-General has contended that the power of seizure and imposition of penalty has been rightly and correctly exercised. 4.. The rival submissions advanced on behalf of the parties have received the due and anxious consideration of the court. What must be emphasised at the outset is that the Act contemplates exercise of different species of power at different stages leading to the assessment of levy and collection o....
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....ous statutory authorities and though all such powers are designed to ensure proper levy and collection of taxes, the manner and extent of such exercise must vary. In case of a registered dealer if the total quantity of goods in stock or in transit are identifiable and the variety thereof is also known, to hold that the goods are not properly accounted for merely because there is a difference of opinion as to the sale price thereof, in the considered view of the court, would be doing violence to the scheme contemplated by the Act. Not only that, it would be inherently dangerous to read any such conferment of power at the stage of seizure in view of the possibility of abuse and misuse and it would be far more reasonable to understand such a c....