TMI Blog1997 (12) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... r with M/s. Jubilee Trading Estt. of Dubai for supply of 580 cases of ZVL-ZKL bearings which were to be unloaded at Calcutta Port and to be cleared by the Clearing Agent, M/s. P.G. Modak Sons for onward transmission to Bombay by road. The goods in question being specified goods within the meaning of the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972 (in short, the 1972 Act ) a Transport Pass in form XVI, as required under the Act, was obtained since the goods were not meant to be used or sold within the Calcutta Metropolitan Area. The Inspector of Commercial Taxes, Khidirpore Dock Check-post (respondent No. 4) on perusal of documents was satisfied that ultimate destination of the goods was Bombay and by putting his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned order of the respondent No. 1. 3.. The applicants have now alleged that seizure of goods on December 14, 1994 is illegal and inoperative. According to them the valuation of the goods in question, for the purpose of penalty proceeding, and the order imposing penalty are arbitrary and without any basis. They, therefore, pray for quashing the orders of seizure as well as of imposition of penalty and of the demand notice of form VII-N. They also pray for refund of the amount deposited as penalty. 4.. The respondents have resisted the above prayers by filing an affidavitin-opposition. The contention of the respondents is that since bearings are items notified under section 4A of the 1941 Act, transport of the same in contravention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appropriate authority on a declaration in form XXX before transporting such goods from a port or places notified under section 4B of the 1941 Act, i.e., check-post. Again, under the regulatory measures as contained in section 14C of the 1941 Act, for carrying notified goods (exceeding such quantum or value as may be prescribed by the State Government) through West Bengal, a transporter shall have to obtain a permit in form XXXC in duplicate in the manner provided in rule 89AA of the 1941 Rules from the first checkpost on the entry into West Bengal and, at the last check-post he reaches before exit of the vehicle with such goods from West Bengal, shall produce before the check-post officials the two copies of permit for the latter s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent No. 1 has seized 580 cases of bearings with legal competence under section 14A of the 1941 Act. 9.. Mr. S.N. Bose, learned Advocate for the applicants, contends that he applicants had acted bona fide without any invention to evade tax as is evident from the fact that the applicants obtained transit pass under the 1972 Act. According to him, penalty proceeding should not have been initiated at all against applicant-concern. This plea has been clearly negated by the Commercial Tax Officer by imposing penalty. The question is, therefore, whether there is at least some justification in imposing any penalty. One can find that the plea of possession of transit pass under the 1972 Act is a poor defence against an indictment for violation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as to why a consignment of notified goods bound for Bombay from Dubai should be routed through Calcutta. At the time of hearing before us, Mr. Bose too could not furnish any explanation for the same besides a queer logic that such transportation at times do happen. By sea route Calcutta from Dubai is almost double the distance between Bombay and Dubai. Again, transportation of such goods from Calcutta to Bombay entails a long journey by road involving additional expenditure apart from other hazards endemic to road transport. No doubt, a dealer is not debarred from choosing such circuitous route, though such winding route appears unusual. Coupled with such queer choice if a dealer is detected to have infracted law, where such infractio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort Check-post unloaded the same at their godown. Had the C.T.O. not chanced upon this stock of bearings, the alleged transport permit under the 1972 Act, having spent its force on the clearance of the stock from the Port, could not have the scope to control further movement or the dissipation of the stock by possible clandestine sales resulting sales tax evasion. 12.. It is argued by Mr. Bose that the bona fides of the applicants conduct is patent in the fact that the applicants ultimately transported the impugned goods to Bombay after obtaining endorsement on the Entry Tax Pass at the last checkpost before exit of West Bengal. But such transportation to Bombay occurred only after the concerned goods were detected to be involved in viol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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