OCL INDIA LIMITED Vs. CTO

JUDGEMENT

(1.) THE record is taken up for order.

(2.) THE petitioner placed an order with M/s. Rutgers Chemicals of Germany for supply of Petroleum Pitch used for manufacturing certain products. Under two invoice Nos. 90021333 and 90021468, both dated August 22, 2002, the goods were despatched by ship from Germany with the bill of loading No. SENURTMD 84442706. Ota Fallons Forwarders Private Ltd. was working as the clearing agent of the petitioner and the goods were cleared from the customs authority on payment of customs duties. The petitioner also gave declaration in the relevant form under the rule 211A of the West Bengal Sales Tax Rules, 1995 (herein after referred Rules, 1995). The documents were duly endorsed by the Calcutta Port Authorities and the goods were loaded on the truck No. WMQ -710 and noted in the declaration form. The movement of such vehicles according to the rules are restricted within the area of the Calcutta Port. The goods, therefore, had to be unloaded from the said truck since it could not move outside the Port area and the same goods were again loaded on the truck No. OSX -6571 of Shakti Transport for onward transportation to Orissa.

(3.) A penalty proceeding thereafter, was started against the petitioner and on the date of hearing the petitioner though produced all the relevant documents including the declaration duly endorsed by the Sales Tax Authority at the Calcutta Port and submitted that the truck number was written by mistake in the said declaration, still the respondent No. 1 held the seizure to be valid and imposed the penalty of Rs. 1,18,500 determining the value of the goods of Rs. 3,95,000. The petitioner accordingly deposited the penalty amount and sent the goods to Orissa. The seizure is against the settled principles of law and the order of penalty also is illegal and are therefore liable to be set aside.