V.K.Mehrotra, J. - (1.) On May 14, 1985, we had passed an interim order in this case after hearing Sri Vidya Bhushan Upadhya, learned standing counsel for the State of Uttar Pradesh. We had mentioned in that order that we would give our reasons for making the interim order later. We are doing so now.
(2.) The petition was presented in the court on May 8, 1985. The petitioners are Agra Bartan Bhandar Pvt. Ltd. and Anil Kumar Jain, its Director. The challenge in the petition is to the seizure of the goods from the shop of the petitioners on August 17, 1984 and to the demand of an amount representing 40 per cent of its value by way of security before its release. The petitioners have been impressing upon the respondents (namely, State of Uttar Pradesh; Sales Tax Officer, Mobile Squad, Agra and Deputy Commissioner, Sales Tax, Agra) the desirability of releasing the goods unconditionally.
(3.) Annexure 1 to the writ petition is a copy of the order seizing the goods. It recites that the survey that was made of the business premises/godown of the petitioners on August 17, 1984, revealed that goods substantially in excess of stocks mentioned in the books of account were found in stock. They could not be explained by the petitioners to have been purchased within the State of Uttar Pradesh within the prescribed period nor was any reply given by the petitioners in regard to the irregularities pointed out in the show cause notice due to which the officer (Sales Tax Officer) had reason to believe that the entries of sale and purchase in the account books were doubtful in nature. Further that the presence of excess stock was indicative of the fact that there was intention to evade tax. The goods, according to the order, could be released only on furnishing security for 40 per cent of the value of the goods. Annexures 2, 3, 4 and 11 to the petition are communications addressed to the Sales Tax Commissioner, U.P., on behalf of the petitioners on August 18, September 8, September 11, 1984 and April 24, 1985, requesting him to look into the matter and for the release of the goods without any security. Annexure 5 is the communication addressed by the petitionecto the Assistant Commissioner (Executive), Sales Tax, Agra, of September 20, 1984, with the same request. Annexure 6 is the letter of the same date addressed to the Sales Tax Officer, Mobile Squad, seeking unconditional release of the goods. On September 21, 1984 and thereafter, on September 28, 1984, the Assistant Commissioner, Sales Tax, wrote back to the petitioners, through annexures 7 and 10 to the petition, to get in touch with the Sales Tax Officer, Mobile Squad, Agra, for necessary action. These letters are in reply to a telegram and an application addressed by the petitioner to the Assistant Commissioner for release of the goods. Annexure 9 is a copy of a communication sent to the petitioner on September 22/25, 1984, by the Sales Tax Officer. In it the petitioner has been intimated that there was a survey made of its business premises by the Special Investigation Branch on August 17, 1984, whereafter goods not mentioned in the books of account of the petitioners and which had been found to have been brought from outside the State of Uttar Pradesh, were seized and directed to be released on furnishing security to the extent of 40 per cent of the value of the goods. No security had been furnished and in case it was not done forthwith, these goods, which had been entrusted to the supurdagi of the petitioners, would be removed by the department therefrom and kept in its own godown. It was indicated in the letter that the amount of security should be furnished and the goods got released thereafter else further action will follow.;