MANOJ JOSHI Vs. DR. Y.S. PARMAR UNIVERSITY

JUDGEMENT

(1.) We have heard Sri N.C. Gupta, learned counsel for the petitioner and Sri C.B. Tripathi, learned Special Counsel for the State.

(2.) The petitioner is registered firm dealing in sale and purchase of plastic granules in the State of Bihar. The petitioner alleges that he had purchased 600 bags of plastic granules from M/s Himalaya Enterprises Bhiwani, State of Hariyana. The said good were being transported from New Delhi to Sasaram in the State of Bihar when it got detained by the Mobile Squad of the Commercial Tax Department in the District of Etawah on 1st Dec., 2011. A show cause notice was issued to the driver of the vehicle and, thereafter, a seizure order dated 2nd Dec., 2011 was passed seizing the goods and directing to deposit a sum of Rs. 5,20,515.00 towards security as a precondition for release of the goods. Thereafter an application under Sec. 48(7) of the U.P. Value Added Tax Act was filed before the Joint Commissioner wherein the petitioner appeared personally. This application was rejected on 7th Dec., 2011 pursuant to which, an appeal was filed before the Tribunal which was also rejected on 4th Jan., 2012. Thereafter the petitioner filed a revision before the High Court which was disposed of by an order dated 25th Jan., 2012 wherein the High Court affirmed the seizure order but directed the petitioner to deposit the security in the shape of cash equal to tax which was liable to be paid on the goods and thereupon the goods would be released. The value of tax worked out by the department was Rs. 57,835/.

(3.) In the meanwhile pursuant to the order of the Joint Commissioner dated 7.12.2011, the driver of the vehicle deposited a sum of Rs. One lac as security based on which, 110 bags were released in favour of the driver on 22nd Dec. 2011. This part release of 110 bags was to the extent of the penalty amount involved on these 110 bags. Subsequently, pursuant to the order of the High Court since the total value of the tax involved was Rs. 57,835.00, the balance 490 bags were released without demanding any further amount inasmuch as the security of Rs. One lac already paid by the driver covered the entire amount of 600 bags.