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TMI Blog2020 (10) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... d dealers. The dealer's specific stand is that returns till the month of March, 2020 have been filed and there are no arrears. On account of the lock down restrictions issued in the wake of Covid-19 pandemic, the business was shut down since April 2020. Following the partial lifting of restrictions, the petitioner reopened the business. While so, on 21.08.2020, the Superintendent (HPU), CGST and Central Excise, Madurai inspected and conducted search of the petitioner's place of business. After completion of the search operation, mahazar was also drawn. It was followed by an order of seizure. All the goods set out in the mahazar together with a number of documents were seized. The inspecting official on scrutiny of the books, registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage itself, the learned standing counsel took notice for the respondents. The matter was ordered to be called on 30.09.2020. It was taken up for disposal on 30.09.2020. Acceding to the request for adjournment made by the respondents, the case was taken up for hearing on 01.10.2020. With the consent of the learned counsel on either side, the matter was heard finally. 4. The respondents have offered their para wise comments on the allegations made by the petitioner. The learned standing counsel for the respondent contended that the respondents received intelligence inputs that the petitioner has been evading goods and service tax by mis-declaring the China's origin plastic toys as non electric toys and paying 12% IGST on the imported g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat as per Section 35 (1) of the Act r/w. Rule 56 of the Rules, the registered dealer is obliged to maintain true and correct account of stock of goods at his principal place of business. If he fails to account, consequences will follow. The learned standing counsel would state that the adjudication proceedings will now commence and therefore, the validity of the seizure cannot be challenged. The petitioner's rights will have to abide by the outcome of the adjudication proceedings. His core argument is that this Court cannot sit in appeal over the reasonable belief of the proper officer for ordering search. The learned standing counsel placing reliance on the decisions reported in 1987 (20) E.L.T 483 (S.C) (State of Gujarat vs. Shri Moh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation of the belief have a rational connection with or a relevant bearing on the formation of the belief and are not extraneous or irrelevant for the purpose of the section. To this limited extent, the action of the authority in initiating proceedings is open to challenge. Of course, as contended by the learned standing counsel for the respondents this judgment was rendered in the context of Income Tax Act as regards the reopening of the assessment where income escaped assessment. But then, the same principles will govern the case on hand also. It is true that this Court cannot sit in appeal over the satisfaction of the proper officer. It is equally true as observed in 2004 (168) E.L.T 298 (Mad) (Bhagwan R.Daswani vs. Collector of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompletion of the investigation of the case. 10. The respondents may not be in a hurry. They can afford to wait. Officials who get their salaries in the first week of every month may not be conscious of the cost of delays in such cases. Adjudication proceedings may go on for months. That is why, the statute provides for provisional release of the detained goods. Section 67(6) of the Act reads as follows : "The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be." 11. I am of the view that the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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