Seizure of Goods Overturned Due to Lack of Proper Inquiry Despite Suspicion in Interstate Sale Case.

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....Demand of tax alongwith interest and penalty - absence of required documents at the stage of interception of the goods and physical verification - In view of the lack of enquiry and lack of reasonable doubt, the continued seizure and confiscation as also the demand of tax and penalty is based solely on presumptions and conjectures. While the mistake claimed by the petitioner gave rise to the valid suspicion with the revenue authorities inside State of U.P. as to the genuineness of the transaction as an inter-state sale claimed (at that stage orally), however, upon furnishing of the original tax invoices at the stage of the show cause notice itself, initial onus that rested on the assessee was discharged. - HC....