2011 (8) TMI 1180

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....artment and Sri Nishant Mishra on behalf of the opposite party. Seizure of the consignment during transit at Etach has been effected under section 48(7) of the U.P.Value Added Tax Act vide the order of the assessing authority dated 25.4.2011 on the ground that the goods had been under valued by more than 50% of the true value of the goods. Representation was made against the seizure under se....

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....eld that the Seizing Authority has filed to establish that the value of the goods was under valued by more than 50% viz-a-viz the market value. It has therefore been held that the seizure of the goods was unjustified. The release of the goods have been directed without insisting on any security. Challenging the order so the counsel for the department stated that the release was not justified th....

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....eizure by producing documents from the market which have no bearing on the controversy. He submits if the Department did not have material available with it as per Section 47(1) of the Trade Tax Act seizure would be rendered illegal. I have heard learned counsel for the parties. For appreciating the controversy raised reference section 48(1) (iii) of the Value Added Tax which reads as follow....

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....ued to the extent to more than 50 per cent of the market value. It is, but necessary that such calculation must be done with reference to the local market area where the said transaction has taken place. The crucial value under section 48 (iii) is the market value of the goods in the local market area where the transaction had taken place. In the facts of the case the transaction is said to hav....