DHARAMPAL SATYAPAL LIMITED Vs. STATE OF TRIPURA

JUDGEMENT

(1.) THE petitioner by means of this petition has challenged various orders whereby its goods were seized, the matter was compounded and the representation made by the petitioner was rejected by the State.

(2.) THE petitioner -company has a unit in Tripura where it manufactures Zarda. According to the petitioner, it was transferring sandal wood oil from its unit in Noida to the unit in Tripura. The case of the petitioner is that this was a stock transfer. This sandal wood oil was being sent by air and since there was no permit, the goods were not released and were seized under section 67 of the TVAT Act. The representative of the petitioner thereafter approached the revenue authorities for compounding the matter and the matter was compounded on payment of Rs. 12,00,000/ -. By means of this petition, the petitioner submits that since it was only a stock transfer, there was no tax leviable and, therefore, the whole action of compounding is totally illegal.

(3.) THE company was aware that when material was being brought in from outside the State, it should carry valid Incoming Road Permit in Form 24. The only explanation given is that since there was no officer of the revenue department posted there and their production had come to a halt, they lifted the stocks without the road permit. Not only that, the competent authority, i.e. the Superintendent of Taxes passed an order on the same date, i.e. 22 -08 -2008 compounding the matter at the request of the petitioner and the relevant portion of the order reads as follows: -