KIRAN EXPORTS INDIA Vs. CTO

JUDGEMENT

(1.) IN this application under Section 8 of the West Bengal Taxation Tribunal Act, 1987 which is in the nature of a writ application, the petitioner has challenged the seizure made by respondent No. 1, Commercial Tax Officer, Durgapur Range in respect of 250 cartons of ready -made garments on September 7, 2001 under Section 70 of the West Bengal Sales Tax Act, 1994.

(2.) RESPONDENTS have filed affidavit -in -opposition wherein it has been contended that it is a case of sale not in the course of export. Such a story of export was never referred to earlier before the sales tax authority seizing the goods. It is actually a sale by the petitioner of Calcutta to Gudiya Enterprises of New Delhi in the course of inter -State trade. By way of after thought, the story has been made after manufacturing a paper - -that is - -the alleged purchase order dated August 24, 2001. So provisions of Section 73 read with Rule 214C very well apply. At the time of verification of documents produced by the driver though it appeared that the consignment of goods was of a sale by the petitioner to Gudiya Enterprises of Delhi, while examining the goods physically it was found that the ready -made garments were of standard quality. But the price of item was noted as Rs. 25 per piece which was too low a price regard being had to the prevailing market rate vis -a -vis the quality of the goods. In such a case of transportation of goods covered by Rule 214C, the seizing officer can very well look into the matter of valuation of goods in order to judge if there had been any evasion of tax from the side of the dealer. Mentioning of value much less than the actual market price results in calculation of tax and realisation of sales tax at much less an amount resulting in loss of Government revenue. Such under -invoicing is not permitted under the law and hence seizure made is valid and lawful.

(3.) THE points that require for consideration are :