TMI Blog1980 (10) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... name of the consignor was shown as Surendra Chemicals and that of the consignee as Arya Chemicals (the petitioner). The receipt indicated that 40 bags of zinc oxide had been despatched by Surendra Chemicals from Delhi to M/s. Arya Chemicals of Ferozabad. The truck driver was unable to produce any document in respect of the remaining 40 bags of zinc oxide. The Sales Tax Officer, Mobile Squad, accordingly felt that 40 bags of zinc oxide which had been brought along with the remaining 40 bags of zinc oxide covered by the goods receipt, in all probability belonged to M/s. Arya Chemicals which had procured those goods outside its books. However, as none of the 80 bags bore any special sign or making and it was not possible to ascertain which 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased in its favour without requiring it to pay any amount to the sales tax department and when it failed in its attempt, it filed the present petition under article 226 of the Constitution and prayed that a writ be issued to the respondents directing them to release 40 bags of zinc oxide in its favour. The case of the petitioner is that the seizure of 40 bags of zinc oxide belonging to it for which all the necessary papers had been produced by the driver of the truck before the Sales Tax Officer, Mobile Squad, was completely without jurisdiction. In the circumstances the respondents are bound to release those bags to the petitioner forthwith and that they are not authorised to detain those bags on the pretext that the petitioner has faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obile Squad, were concerned, they belonged to the petitioner and were being transported under proper documents. There is no averment made on behalf of the respondents that those 40 bags of zinc oxide were not accounted for in the books maintained by the petitioner in the course of its business. It may be that in the circumstances even though the petitioner denied his ownership or concern with the remaining 40 bags of zinc oxide, the Sales Tax Officer, Mobile Squad, had reasons to believe that those 40 bags also belonged to the petitioner and that those bags were being dealt with by the petitioner outside its books. In the circumstances, the Sales Tax Officer, Mobile Squad, acquired jurisdiction to seize, under section 13-A of the Act, only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 80 bags of zinc oxide found on the truck contained identical quality and quantity of zinc oxide from the same manufacturer. It was open to the transporter to, as against goods receipt No. 44260, deliver to the consignee any 40 of those bags. The Sales Tax Officer, Mobile Squad, could also treat any of those 40 bags as appertaining to goods receipt No. 44260 and seize the remaining 40 bags. We are, accordingly, of the opinion that in the circumstances of the case, from out of the 80 bags seized by the Sales Tax Officer, Mobile Squad, he was entitled to seize only 40 bags of zinc oxide and that he had no jurisdiction to seize the remaining 40 bags in exercise of the power under section 13-A of the Act. His action in reporting more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that those goods do not belong to it and that it has nothing to do with those goods. We have in this case, without expressing any opinion on this controversy, proceeded to decide the case on the assumption that even if all the 80 bags of zinc oxide belonged to the petitioner, it still is entitled to have 40 bags of zinc oxide, covered by goods receipt No. 44260, released in its favour. The controversy whether the petitioner has incurred any liability in respect of the remaining 40 bags of zinc oxide can properly be resolved only in appropriate proceedings. In the result, this petition succeeds and is allowed with costs. Respondent No. 2 is directed to forthwith release any 40 bags from out of 80 bags of zinc oxide seized by him to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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