9911796707
TMI Blog1999 (3) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... tained on March 31, 1997. On April 1, 1997 some of the items of goods being transported in the truck were seized from the driver, Amrik Singh, under section 70(1) of 1994 Act on the ground that those goods were either notified goods or goods specified in Part A of Schedule IV to 1994 Act, but on demand and even after sufficient opportunity having been given, the driver failed to furnish the required particulars in forms prescribed under section 68 (see seizure receipt, page A-32). After show cause notice was served on the driver on April 2, 1997 fixing April 25, 1997 as the date of hearing of the case for imposition of penalty, the driver applied for early hearing on April 3, 1997 and accordingly, the hearing was advanced, it took place on 3rd April itself and the order imposing penalty of Rs. 2,55,028, being at the maximum rate of 25 per cent of the estimated value of Rs. 10,20,112, was passed by respondent No. 1 on the same date. On the same date respondent No. 1 passed an order requiring security which was challenged before this Tribunal in RN-109 of 1997 and ultimately the matter was taken to the High Court. But that is not very material now. The seized goods were: Chunkey ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by order dated May 29, 1988 reduced the amount of penalty to Rs. 2,10,000. The second revision was preferred under section 81 of 1994 Act before respondent No. 3, the Deputy Commissioner of Commercial Taxes, Central Section, who by order dated December 16, 1988 further reduced the amount of penalty to Rs. 1,76,250. It is alleged that respondent No. 3 "wrongfully" stated in the order that he had caused a market verification for determination of valuation of Caltan brand 1.5 tonnes capacity air-conditioner kits and found that the price ranged from Rs. 20,000 to Rs. 22,000 at the relevant time. The market verification report was not, however, allegedly supplied to the applicant. In paragraphs 19 and 20 of the application, the applicant has stated that sections 68, 70 and 71 of 1994 Act and rules 210, 211, 213 and 215 of the West Bengal Sales Tax Rules, 1995 are ultra vires article 19(1)(g) of the Constitution of India and articles 301 and 304 thereof. In ground (a), however, the applicant has stated that sections 2(6), 11, 14, 68, 69, 70 and 71 of 1994 Act and rules 210 to 214 of 1995 Rules are beyond the legislative competence of the State Legislature "on the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax payable on his own income. As is well-known the legislative entries have to be read in a very wide manner and so as to include all subsidiary and ancillary matters. So entry 54 should be read not only as authorising the imposition of a tax but also as authorising an enactment which prevents the tax imposed being evaded. If it were not to be so read, then the admitted power to tax a person on his own income might often be made infructuous by ingenious contrivances. Experience has shown that attempts to evade the tax are often made." It was followed in a number of cases including Sodhi Transport Co. v. State of U.P. [1986] 62 STC 381 (SC). In the case of Sodhi Transport Co. [1986] 62 STC 381 (SC) at page 392 the following paragraph occurs: "The levy of sales tax on goods which are held to have been sold inside the State cannot be considered as contravening article 301 of the Constitution. The restrictions imposed are not also shown to be unreasonable. They do not unduly hamper trade. On the other hand they are imposed in the public interest. The contentions based on article 301 and article 19(1)(g) of the Constitution are, therefore, without substance." In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d form are covered by Sl. No. 69 of part A of Schedule IV. Certain types of mixed spices in powdered form or broken form are covered by Sl. No. 13 of notification No. 1066-FT dated April 13, 1995 issued under section 10 of 1994 Act. Mr. Dokania submitted that sambar and chicken masala powders contained some of the spices in powdered form which are either notified goods or goods specified in Part A of Schedule IV, but they also contained some other items like salt and preservatives. Mr. S.K. Saha Roy, learned State Representative for the respondent, rightly submitted that a new case like this cannot be taken by the applicant for the first time at this stage, and that the items in question were predominantly powdered spices of the varieties which are either notified goods under section 10 or specified goods under part A of Schedule IV. Mr. Dokania admitted that the point agitated here was not pleaded or argued before the authorities below, and also it was not pleaded in the present application. On that ground alone the applicant cannot be allowed to urge this point before us for the first time. Moreover, we also agree with Mr. Saha Roy that mere presence of salt and some other prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bout valuation of seized A.C. machines. He did not contend before us that report, if any, of market verification referred to in order dated December 16, 1998 passed by respondent No. 3, was not made available to applicant, although such a plea was taken in ground (n) at page 26 of the application. Of course, no one knows whether there was any written report at all of market verification. On the other hand, Mr. Dokania drew our attention to annexure pages G-49 to G-52. Page G-49 is an undated certificate apparently issued by Caltan Instruments Pvt. Ltd. (manufacturer) saying that the total value of all the fifteen seized A.C. machines was Rs. 67,000 only. Page G-50 is apparently a quotation dated March 27, 1997 submitted to the applicant mentioning price of each set (without compressor and gas) as Rs. 4,500 only. pages G-51 and G-52 comprise an affidavit (probably dated March 1, 1999, i.e., only a few days back) affirmed before a Notary Public of Delhi by one Narinder Narang on behalf of the applicant, but not declaring or disclosing his nature of connection with the applicant (company). Obviously, the affidavit is a very recent addition to the applicant's collection of evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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