LAWS(ALL)-2019-4-209

OFFSHORE EXIM LTD Vs. STATE OF U P

Decided On April 29, 2019
Offshore Exim Ltd Appellant
V/S
STATE OF U P Respondents

JUDGEMENT

(1.) Heard Sri Sushil Shukla, learned counsel for the applicant, Sri K.M.Tripathi, learned counsel for the opposite party no.2 and learned A.G.A. for the State.

(2.) The present application under Section 482 Cr.P.C. has been filed for quashing the entire proceedings of Criminal Complaint Case No.3472 of 2000 (Singhal Export Corporation vs. M/s Offshore Exim. Ltd. and others), under Section 420 I.P.C., Police Station- Ganj, District- Rampur, pending in the court of Additional Chief Judicial Magistrate-Ist, Rampur.

(3.) Brief facts giving rise to present application are that opposite party no.2 filed complaint against applicant firm in the court of Additional Chief Judicial Magistrate-Ist, Rampur which was registered as Complaint Case No.3472 of 2000 with the averment with complainant is engaged in manufacture and sale of menthol in respect of which he has installed a unit. His firm is also registered under the State Sales Tax and Central Sales Tax. According to the rules of Uttar Pradesh Sales Tax Rules any menthol which is sold outside the State 10 per cent tax has to be paid and if the purchaser furnishes form-C in that eventuality trade tax is levied on a control rate of 4 per cent. Rules further stipulate that if any purchaser businessman wants to export menthol outside country then Form-H is to be supplied by him and in this case no sales tax is levied from the seller. According to the complaint, accused placed order of purchasing 2000 kgs of menthol and assured that the said menthol will be exported and in this behalf Form-H under the Central Sales Tax Rules shall be supplied to him. The deal was settled at the rate of Rs.522.50/- per kg and the accused also assured that they have already obtained order of export of 2000kg of menthol and they shall purchase the same for export. Therefore, the rate be reduced to 10 per cent whereupon the rate was fixed at Rs.470/- per kg. It is also averred that the accused also assured opposite party no.2 that in the event the menthol is not exported and he is unable to furnish Form-H, thus in lieu of it the accused shall pay Rs. 1 lac on purchase of 2000kg of menthol or supply Form-C and Rs.40,000/-. It is stated that the applicant did not provide Form-H and thus a notice was sent to them on 31.05.1999 for furnishing Form-C and Rs.40,000/- or Rs. 1 lac. Notices were again sent on 03.9.1999 and 13.11.1999 by the registered post but the accused neither furnished Form-H nor Form-C and Rs.40,000/- nor Rs.1 lac to him and on the basis of false representation that accused has an export order in order to make wrongful gain to himself and cause wrongful loss to complainant induced him to sell menthol at price of Rs.470 per kg. As the accused did not supply Form-H, the Tax Department is demanding Rs.92,782/- as ten per cent tax towards aforesaid transaction. Statement of opposite party no.2 was also recorded under Section 200 Cr.P.C. and he has also placed several documents regarding transaction between him and the accused.