1973 (6) TMI 52 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the seizure of account books by the respondent was legal.
2. Whether the search conducted by the respondent on the petitioner's premises was in accordance with the law.

Analysis:
1. The petitioner, a partnership firm registered under the Mysore Sales Tax Act, challenged the seizure of their account books by the respondent. The respondent suspected the petitioner of maintaining two sets of account books, one for assessment under the Act and another for private purposes. The respondent decided to inspect the premises to seize the private account books, which he believed would reveal tax evasion. The petitioner argued that the seizure was illegal as it was conducted without a search warrant and violated the Code of Criminal Procedure. The court had to determine if the seizure was lawful based on whether it was made after inspection or search of the premises. The court defined "search" as a thorough inspection for concealed items. The respondent's actions indicated a search for hidden account books, leading to an illegal seizure. Thus, the court directed the respondent to return the seized items to the petitioner.

2. The court examined whether the respondent's actions constituted a search or mere inspection of the premises. The respondent contended that since the private account books were in plain sight, no search was conducted. However, the court disagreed, stating that a search involves exploring hidden places for concealed items. The private account books were not openly displayed but hidden until after 7 p.m. The respondent's intention to seize these concealed books for evidence indicated a search. As the respondent failed to comply with the Code of Criminal Procedure, the search and subsequent seizure were deemed illegal. Consequently, the court ordered the return of the seized account books and documents to the petitioner.