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TMI Blog2010 (7) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act) contravening section 31(2a) and (3) of the same. No one appears on behalf of the respondents. No counter-affidavit has been filed on their behalf. It was submitted on behalf of the petitioner that its agent was carrying the specified bullion ornaments on consignment basis in the name of the consignor with its value disclosed by a specified train. This consignment note contained proper details of the Bihar sales tax and Central sales tax number of the consignor. The goods were for sale outside the State and under section 7(1)(b) of the Finance Act, no tax upon the sale was payable within the State of Bihar as it stood exempted. The consignment was however seized by the Government Railway police on January 4, 1992 and handed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the above provisions, it is clear that before ordering seizure of the goods, the prescribed authority must be satisfied on verification that the transportation of goods was being made in contravention of the provision of sub-section (2a) of section 31 of the Act in a manner likely to deprive of the taxes payable. The satisfaction mentioned is not subjective but an objective one. That was not done in this case. Likewise, sub-section (3) of section 31 of the Act enjoins on the prescribed authority to give a finding before levying penalty that the person concerned has not only contravened sub-section (2a) of section 31 of the Act, but also must give a finding that such contravention is likely to lead to evasion of tax payable under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed under the old provisions of sub-section (2a) continue to hold the field in the absence of issuance of any notification by the Commissioner of Taxes, after the old provisions of the Act was substituted by the Ordinance 20 of 1993. I find force in the submission of the learned counsel for the petitioners that substituted sub-section (2a) of Section 31 of the Act having specifically provided that a Person transporting goods shall carry form of declaration in such form as may be prescribed by the Commissioner by a notification. While transporting the goods through the State of Bihar, for giving effect to the provision of sub-section (2a) of Section 31 of the Act after the old provisions of sub-section (2a) was substituted, it was essen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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