TMI Blog2016 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... is also based on 150% penalty which is maximum imposable under the statute and not necessarily always imposed at such maximum rate. In that view of the matter, on some further conditions, the seals on the godowns can be lifted. - Upon the two undertakings being filed and postdated further cheques being issued by the petitioner, seizure of the stock would be lifted. The department shall remove the seals on the godowns. - SPECIAL CIVIL APPLICATION NO. 19659 of 2015 - - - Dated:- 9-12-2015 - MR. AKIL KURESHI AND MR. MOHINDER PAL, JJ. FOR THE PETITONER : ADITYA A GUPTA, ADVOCATE, MR AR GUPTA, ADVOCATE FOR THE RESPONDENT : MS VACHA DESAI, AGP ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Petitioner has ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having received any such goods and therefore, declined any tax liability on the same. In order to avoid sealing of the godowns, they agreed to issue postdated cheques totaling to ₹ 26,66,318/- representing principal duty liability. The competent authority, however, proceeded to seal the godowns in exercise of powers under Section 45 of the VAT Act. This petition has, therefore, been filed for the prayers noted above. 3. Learned counsel for the petitioner submitted that the duty liability is yet to be assessed. The petitioner would be in a position to reconcile the stock with the purchase bills. The firm has not indulged in any activity of sale of goods without payment of tax. The action of the respondent under Section 45 of the VAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame time, the estimate of the department on possible duty and penalty liability is also based on 150% penalty which is maximum imposable under the statute and not necessarily always imposed at such maximum rate. In that view of the matter, on some further conditions, the seals on the godowns can be lifted. 6. We have noticed that the petitioner has already issued cheuqes worth ₹ 26,66,318/-. The seizure of the goods as per order dated 09.11.2015 would be lifted and the seals on the godowns be removed upon fulfillment of following conditions: (I) The partners of the petitioner firm shall file an undertaking before the Court that, as and when the remaining cheques already issued by the firm are presented for realization by the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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