2008 (12) TMI 713 - AT - VAT and Sales Tax

Summary

Issues:
Challenge to seizure of consignment of goods, order of penalty, first and second revisional orders.

Seizure of Goods:
The petitioner, a public transport company, challenged the seizure of goods transported in a vehicle at a check-post for violation of the West Bengal VAT Act. The goods were imported for the company's own use, not for sale. The petitioner argued that they were unaware of the seizure as the authorities did not inform them promptly. The petitioner attempted to produce valid way-bills but was unsuccessful. The Sales Tax Officer imposed a penalty under section 77 of the Act, which was confirmed by the revisional authorities.

Legal Analysis:
Section 73 of the West Bengal VAT Act, 2003 prohibits the transport of goods without necessary documentation. The absence of required way-bills during the detention and seizure of goods justified the legality of the seizure under section 76 of the Act. The penalty imposed by the Sales Tax Officer was based on the estimated value of the goods. However, the first revisional authority accepted that the goods were not imported for sale but for the petitioner's own use, leading to the conclusion that the penalty was unwarranted.

Decision:
The Tribunal set aside the penalty order and subsequent revisional orders, citing the company's lack of intention to sell the goods and the delay in communication regarding the seizure as reasons for the unlawful imposition of the penalty. The application was allowed without costs.

Judgment:
The Tribunal, comprising Pradipta Ray and Deb Kumar Chakraborti, JJ., agreed to set aside the penalty and revisional orders, providing relief to the petitioner based on the circumstances and legal analysis presented during the proceedings.