STELCO STRIPS LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This order shall dispose of Civil Writ Petition Nos. 14885 of 2004 ; 5372 and 5417 of 2005; 3837 and 3867 of 2006 and 7078 of 2007 raising same question. "Whether the provisions of Section 14B(7)(ii) and (iii) of the Punjab General Sales Tax Act, 1948 providing that proceedings shall be decided within a period of 14 days from the commencement of enquiry proceedings are directory or mandatory". The relevant facts to determine the abovesaid legal question are being taken from CWP No. 14885 of 2004.

(2.) The petitioner is a firm registered under the Punjab General Sales Tax Act, 1948 (for short, "the State Act") and the Central Sales Tax Act, 1956 (hereinafter to be referred as, "the Central Act"). The petitioner dispatched mill parts to Pondy Technologists Limited on June 5, 2003 in truck No. NL-01A-6467 on June 5, 2003 accompanied by valid bill and goods receipt. However, such consignment was detained by the Incharge, Information Collection Centre. The order of detention of goods and vehicle was passed on June 5, 2003. The petitioner submitted his written explanation and documents on June 9, 2003. However, no final decision was taken by the competent authority. The goods were released against surety bonds and proceedings were sent to the Assistant Excise and Taxation Commissioner on July 7, 2003 for taking action under Section 14B(7)(ii) of the State Act. The proceedings could not be finalised but after joining of the officer Shri Amrik Singh, Assistant Excise and Taxation Commissioner, the proceedings were re-initiated and finalised on May 26, 2004 and a penalty of Rs. 9 lacs was imposed.

(3.) The petitioner has challenged the said order in the present writ petition on the ground that such order could not have been passed after the expiry of 14 days of seizure of the goods and the vehicle, which is on June 5, 2003 in terms of Section 14B(7)(ii) and (iii) of the State Act.