SPS SPONGE IRON LIMITED Vs. CTO/HOWRAH RANGE

JUDGEMENT

(1.) THIS is an application under Section 8 of the West Bengal Taxation Tribunal Act, 1987 for setting aside the seizure of the goods made by the respondent No. 1 on April 4, 2002 at G.R.G.'s warehouse and for setting aside the penalty proceeding. The petitioner is a manufacturer of sponge iron and set up an industrial unit at Dr. Zakir Hussain Avenue, Durgapur. On March 26, 2002 he contacted R.K. Goyal of M/s. Steel and Metal Trading Co. at Netaji Subash Road, Kolkata, for providing adequate space for unloading 5 wagon load of Joist. He also contacted G.R. Goyal of M/s. G.I. Corporation at Netaji Subash Road, Kolkata, for providing similar space for unloading 4 wagons load of Joist, on rent at Rs. 25 per MT per month from the date of delivery of such goods till those are removed. An agreement was also made on March 26, 2002 between G.R. Goyal and the petitioner.

(2.) ON March 26, 2002/March 27, 2002 more or less 300 MT of joist were unloaded at R.K. Goyal's warehouse and 240 MT of joist at G.R. Goyal's warehouse on March 28, 2002. On April 4, 2002 the respondent No. 1 along with some other officials visited the warehouse and without verifying any documents, seized those goods arbitrarily which were purchased from the Indian Iron and Steel Co. Ltd. (in short, "IISCO Ltd.") and were not brought from outside West Bengal. Though information of seizure was given by the R.K. Goyal and G.R. Goyal over telephone, the matter was placed on record in writing by them on April 5, 2002. Both R.K. Goyal and G.R. Goyal moved before this Tribunal against the order of seizure and the application was registered being number RN -160 of 2002 and 161 of 2002. The petitioner claimed the ownership of the goods and it was decided in favour of the petitioner by the respondent No. 2 as per direction of the Tribunal.

(3.) THE respondent Nos. 1 and 2 denied all the allegations made out by the petitioner and alleged that seizure was rightly made for violation of the provisions of Section 97 and 88 of the West Bengal Sales Tax Act, 1994 read with Rule 17 of the Sales Tax Rules, 1995 (in short "Act, 1994", "Rules, 1995"). The alleged agreement for rent is false and fabricated documents. The ownership of joist was denied by G.R. Goyal by letter dated April 11, 2002. The joist, as admitted by a letter dated March 12, 2002 are not required by the petitioner for the purpose of manufacturing sponge iron. The offer to deliver the goods actually was given by IISCO to K.K. Enterprise, though petitioner sent a cheque for Rs. 1,60,000 with declaration that no sales tax to be charged. The seized goods actually were not the identical goods sent by the IISCO, since no marking of IISCO has been found there to identify that the goods were delivered by IISCO. The goods actually delivered by IISCO might have been unloaded at some other godown. The seizure, therefore, rightly was made. RN -221 of 2002 was also heard since identical question of law is involved.