- (1.) Leave granted. Challenge in this appeal is to the judgment and order dated 10.10.2006 passed by a learned Single Judge of the Allahabad High Court in Trade Tax Revision No. 694 of 2006. By the impugned order the learned Single Judge allowed the Revision Petition filed under Section 11 of the Uttar Pradesh Trade Tax Act, 1948 (in short the Act ) and directed release of certain goods which were seized without security and Rs. 20,000/- was imposed as costs.
(2.) The factual background in a nutshell is as follows: The Check Post Officer posted at the Entry Check Post Tamkuhiraj, District Deoria, in the State of Uttar Pradesh issued transit Pass No. 1006 dated 13.6.2005 in respect of the goods carried in Truck No. HR-55A-4687. The same was presented before the Check Post Officer, Exit Check Post, Transport Nagar, Ghaziabad on 15.6.2005. As per Transit Pass, 99 drums of Agro Chemicals valued at Rs. 59,87,142.85 were recorded. These goods were shown to have been transported from Kapru in Assam to Bhatinda in the State of Punjab. A physical verification of the goods loaded in the truck was carried out by the Check Post Officer posted at the Exit Check Post and it was found that the goods relatable to the 99 drums of Agro Chemicals were different from those covered by the Transit Pass No. 1006. The officer posted at the check post issued show cause notice No. 553 dated 15.6.2005. According to the officer, on a perusal of the goods in question it was clearly established that the goods for which Trip Sheet No. 1006 dated 13.6.2005 was issued have been unloaded within the State of Uttar Pradesh and in its place different goods have been loaded within the State of Uttar Pradesh and such goods were being transported to a place outside the State of Uttar Pradesh. It was therefore concluded that there was a sale which is taxable under the Central Sales Tax Act, 1956 (in short the Central Tax"). But under the garb of the said Trip Sheet No. 1006 dated 13.6.2005 different goods were being carried. Goods loaded in the truck were analysed in the Shri Ram Institute of Industrial Research Delhi. On receipt of the Analysis Report, part of the goods weighing 375 kg. and valued at Rs. 37,50,000/- were seized on 31.12.2005 and security to the extent of 40% of the value of the seized goods i.e. Rs. 15 lakhs was demanded for the release of the goods as seized by the Check Post Officer. The dealer was directed to disclose the identity of the remaining goods which were detained. There was no response to the query.
(3.) Being aggrieved by the aforesaid order dated 31.12.2005, the respondent filed an application in terms of Section 13A(6) of the Act for release of the goods without payment of security before Deputy Commissioner (Check Post) Trade Tax, Mohan Nagar, Ghaziabad. The said Authority by order dated 28.1.2006 rejected the application and affirmed the Seizure Order as well as the demand of security for release of goods. Order passed under Section 13A(6) by the Deputy Commissioner was challenged before the Tribunal, Trade Tax, Ghaziabad, Bench II (in short Tribunal ). Stand of the respondent before the Tribunal was the Transit Pass has been issued from the Entry Check Post on 13.6.2005 when the truck arrived at the Exit Check Post on 15.6.2005, after travelling the distance of about 700 k.m. and it was not possible during such short period for the truck driver to unload and sell the goods originally loaded in the truck at the time of entering the State through the Entry Check Post and thereafter to load other goods in the same vehicle from a place within the State of Uttar Pradesh before crossing the State through the Exit Check Post. Tribunal rejected the contention on the ground that the plea about possibility of unloading and selling the goods was not acceptable. The Tribunal observed that merely because the said vehicle had covered a distance of 700 k.m. it could not be ruled out that as a part of the pre-planned strategy, the original goods could be unloaded and in its place different goods could be loaded within a short period of one or two hours. The Tribunal observed that whether the goods loaded in the vehicles were those very goods which were available in the vehicle at the time of entry of the vehicle at the Check Post as a fact which could be ascertained only after the through examination of the documents presented at the Exit Check Post as well as the physical verification of the goods loaded in the vehicle at the time of inspection at the Exit Check Post.;