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2016 (9) TMI 614 - HC - VAT and Sales TaxRelease of attachment of goods - Section 45(1) of the VAT Act - non-ferrous metals - aluminium - lead - zinc - copper - nickel - customs bonded warehouse - VAT liability - Held that: - In terms of Section 45(1) of the VAT Act, the competent authority undoubtedly has the power of provisional attachment where during the pendency of any proceedings of assessment or re-assessment of turnover escaping assessment, he is of the opinion that for the purpose of protecting the interest of Revenue, it is necessary to do so. However, such powers being in the nature of attachment before judgement need to be exercised with due care and caution and only in appropriate cases, where the material is available justifying exercise of such extreme power. In the present case, it would prima facie appear that the goods stored by the petitioner in the bonded warehouse being sold before the import is completed, there would be no liability to pay value added tax on such transaction. Classification - Nickel Cathode - Nickel Full Plates - Held that: - there is no mismatch in the goods brought by the petitioner from abroad and that is sold to the Indian customers. Minor difference in description of the goods in two sets of documents can be attributed to different but synonymous terms being used by the same set of goods. The petitioner keeping the bank guarantee of ₹ 30 crores in favour of the department alive till the assessments are framed and subject to the orders contained therein, the petitioner would be free to deal with the goods in question without there being any further attachment - petition disposed off - decided in favor of petitioner.
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