2018 (4) TMI 281

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....). Petitioner is a proprietary concern, engaged in dealing in food grains, ground nuts, oilseeds and other agricultural products. The petitioner is registered under the VAT Act and Central Sales Tax Act. The respondent authorities had conducted raid on the business premises of the petitioner concern on 26.09.2017, during which, it was primafacie found that petitioner was engaged in bogus billing activities. The books and accounts of the petitioner were seized. The statement of the proprietor of the petitioner concern was recorded. From the materials, it was found that the petitioner had made purchases from various dealers whose registrations were canceled. The petitioner was asked to produce the manner of delivery and payments to banking ch....

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....chases for the year 201516 is Rs. 12,93,68,047/which is shown at page 58 of the earlier affidavit in reply. The total purchases for the year 201617 is Rs. 3,84,46,521/which is shown at page 63 of the earlier affidavit in reply. Therefore the total bogus billing activity comes to Rs. 21, 71,95,899 for the concerned period. The tax element on such transactions is Rs. 1,08,59,790/. Interest u/s 42 (6) comes to Rs. 30,30,411/. Penalty under section 34 (12) comes to Rs. 1,62,89,685/and penalty under section 34(7) comes to around 1,62,89,685/. A chart showing the details and computation is annexed herewith and marked as Annexure - A1." 3. Learned counsel for the petitioner submitted that the registration of the dealers from whom the petitioner....

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.... to the dealer where such authority is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do. These powers are thus extraordinary in nature and in terms of subsection (2) of section 45; such exercise of powers by issuing order of provisional attachment would cease to have effect after expiry of period of one year from the date of the order passed under subsection (1). Thus, on one hand the authority undoubtedly has power of provisional attachment and at the same time exercise of such power would cause considerable inconvenience to the dealer. The Courts therefore always scrutinize the grounds for exercising such powers and modify the terms on which the provisional attachment may h....