SAROOP TANNERIES LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) THIS a petition under article 226 of the Constitution for restraining the respondents from encashing the bank guarantee and recovering the penalty imposed under section 14-B (7) of the Punjab General Sales Tax Act, 1948 (for short, "the Act".)

(2.) THE petitioner-company is registered as a dealer under the Act as well as under the Central Sales Tax Act, 1956 and is engaged in the business of manufacture and sale of leather goods and sports goods. The petitioner-company purchased raw hides as raw material for manufacturing goods. An order for the supply of raw hides was placed with M/s. Welcome Hide Company, Hapur. Raw material valued at Rs. 8,50,150 was sent by the seller through M/s. Supreme Transport Company in truck No. DEL-5575, vide G. R. No. 890 dated October 22, 1996. The said vehicle was checked near Phillaur by the Excise and Taxation Officer-cum-Assistant Director (E), Jalandhar, on October 23, 1996 and the were detained. The petitioner's plea was that no tax under the Act was payable inasmuch as sales tax, if any, was payable under the Central Sales Tax Act only and tax under the said Act could be levied in Uttar Pradesh from were the goods had been sent. The petitioner's plea was, however, not accepted and the petitioner was asked to furnish bank guarantee or the cash security for the release of goods. Penalty of Rs. 2,55,000 was imposed under section 14-B (7) of the Act, vide order dated October 31, 1996. The petitioner-company furnished a bank guarantee for Rs. 2,55,000 on November 5, 1996. Goods were thereafter released on November 13, 1996.

(3.) FROM the facts specified in the writ petition, it would appear that the recovery of penalty has been challenged. It is open to the petitioner-company to challenge the order of penalty and thereby its recovery by filing an appeal as provided in the Act. Since an alternative remedy is available against the levy and recovery of penalty, the course adopted by the petitioner by filing this writ petition under article 226 of the Constitution, cannot be allowed.