PAN PARAG INDIAN LIMITED Vs. COMMISSIONER, COMMERCIAL TAX

JUDGEMENT

(1.) The revisionist is a registered dealer under the U.P. Value Added Tax Act, 2008 (hereinafter referred as, "the Act") as well as Central Sales Tax Act and is engaged in the manufacturing of pan masala from its factory situate in industrial area Fazalganj, Kanpur. Betel nut (supari) is one of the raw material used by the revisionist in making pan masala. It is generally purchased by the revisionist from outside the State of U.P. and is imported in U.P. The revisionist allegedly purchased 212 bags of betelnut (supari) weighing 15,900 kgs. from M/s. Madhukar Narsimha Hegde of Sagar in Karnataka vide bill No. 293 dated December 16, 2010 against import declaration form 38 No, 1234785. The goods were said to have been dispatched vide consignment note No. 519692 through East India Transport Agency bearing full particulars of the consignment. The goods on the request of the revisionist were withheld at Nagpur. Subsequently, the goods continued onward journey from Nagpur to Kanpur vide truck No. UP38-9091. On reaching Kanpur the goods were downloaded in the godown of the East India Transport Agency on February 9, 2011. Thereafter on February 11, 2011 were dispatched to the factory of the revisionist through truck No. UP78/6897. The goods were detained at the factory gate in the afternoon of the February 11, 2011 from where the goods along with vehicles were carried to the office of the commercial tax. After a show-cause notice was issued on February 11, 2011 and a reply was submitted by the revisionist an order of seizure was passed on February 16, 2011 with the direction for their release on furnishing cash security of Rs. 8,98,400 equivalent to 40 per cent of the estimated value of the goods, i.e., Rs. 22,26,000 as against Rs. 19,46,160 mentioned in the bill.

(2.) The representation of the revisionist was rejected by the Joint Commissioner, S.I.B., Commercial Tax, under section 48(7) of the Act vide order dated March 1, 2011, annexure 12 to the revision.

(3.) Aggrieved, the revisionist preferred appeal before the Commercial Tax Tribunal. The Tribunal vide order dated March 26, 2011, partly modified the order appealed against and directed for the release of the goods on revisionist furnishing security of twice the amount of the tax leviable on the said goods.