9911796707
TMI Blog2013 (1) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: The petitioner is a proprietorship firm of which Sri Sanjay Kumar Khetan is the proprietor. It acts as a coal agent and imports coal on behalf of various persons and supply them on the purchase rate plus commission. The railway freight on coal is separately charged and paid to the transporter. For the import of coal from outside the State of Uttar Pradesh, the petitioner requires form of declaration for import which was earlier called as form XXXI. The said declaration form was issued to the petitioner by the assessing authority, namely, the Trade Tax Officer, Siddharthanagar, respondent No. 3. The petitioner is required to file monthly return under rule 41 of the U.P. Trade Tax Rules, disclosing its turnover and liability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecurity for import of coal from railways. According to the petitioner it sells 5000 metric ton coal in a year on which tax liability comes of Rs. 2,20,000 wherein it is required to deposit security of Rs. 6,00,000. The grievance of the petitioner is that it is a small trader and the entire capital would be wiped off if the petitioner is asked to deposit security at 120 per metric ton on the purchase of coal for issuance of declaration form. The validity of security has been challenged on the ground that the Commissioner of Trade Tax, respondent No. 2 cannot fix the amount of cash security as required under section 8C(3A) of the Act arbitrarily and it has to be a reasonable nexus with the value of goods. The amount of Rs. 120 per metric ton ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notified goods by the State Government where under the Commissioner can issue a general order requiring the dealer to furnish cash security for obtaining declaration form. It is not in dispute that by circular dated March 8, 2001 cash security for importing coal by road was fixed at Rs. 125 per metric ton. The rates of coal as obtained from the collieries has increased by Rs. 300 per metric ton which comes to about 15 per cent in the year under consideration. Moreover freight has also increased by about 25 per cent. Selling price of coal in Uttar Pradesh has correspondingly increased by about 25 per cent as against which increase of security is only by about 20 per cent, i.e., Rs. 150 fixed by the impugned circular in respect of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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