2004 (6) TMI 615

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.... of the petitioners both under the KGST Act and Central Sales Tax Act, 1956 on the ground that petitioners had caused obstruction in the matter of conduct of inspection/search by the Sales Tax Department as provided in section 28(4) of the KGST Act as also under section 9(2) of the CST Act read with section 14A of the Act. The impugned orders are passed under section 14A of the Act as introduced by the Act No. 14 of 1998 in the Act as also under section 9(2) of the CST Act read with section 14A of the Act. Petitioners in all these cases have taken the contention that the reason for suspension of their registration under two enactments mentioned above is that the petitioners had caused obstruction to the conduct of inspection by the Intellig....

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....rs in all these cases contended that section 14A of the Act is really an inroad into the fundamental right of the petitioners to carry on their business and that the provision does not contain any safeguards to the petitioners. Various other serious objections were also raised by the counsel in regard to the provision of section 14A with reference to various decisions of the Supreme Court in this regard. The learned counsel also submits that on the facts of these cases no suspension could have been effected. According to him, there is no materials to show that the petitioners had in fact caused any obstructions to the conduct of any inspection. Counsel further submits that even going by the mahazar prepared in the inspection it is seen t....

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....ment. He further submits with reference to various decisions of the Supreme Court the provision of the section 14A of the Act is absolutely necessary for the effective administration of the sales tax law and to prevent obstruction to the conduct of inspection by the officers of the Sales Tax Department as contemplated under section 28 of the Act. I have considered the rival submissions. I am of the view that it is not necessary to go into the question of validity of section 14A of the Act in all these cases. In view of the fact that the impugned orders in the first four cases are passed as early as in 1999 and in view of the fact that this court had stayed the said orders and the subsequent developments pointed out earlier, viz., the rel....