VIKRAM NATH, J. - (1.) BOTH these revisions arise out of the proceedings for the assessment year 2000 -01.
(2.) REVISION No. 2557 of 2005 relates to the assessment proceedings under Section 7(3) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, 'the Act') whereas Revision No. 2558 of 2005 relates to penalty proceedings under Section 15A(1)(o) of the Act. The mobile squad of the Trade Tax Department intercepted the truck carrying certain goods on April 30, 2000. The truck was stationed at the police station and the goods were given to the custody of the station house officer on May 31, 2000. Notice under Section 13A of the Act for seizure of the goods demanding explanation from the dealer was issued by the Trade Tax Department on June 1, 2000. Statement of the driver was also recorded. It is not disputed that the driver deposed that he was carrying the goods from Orai to Kanpur; he further deposed that he did not have complete papers and lastly that the relevant papers were with the owner of the goods who was following in a different vehicle. On the same day, i.e., June 1, 2000, the owner produced the relevant papers which contained two bills Nos. 115 and 116 showing that the goods which were being transported were tax -paid goods and have been purchased within the State of U.P. and were being transported to another district within the State of U.P. Despite the same, the department lodged a F.I.R. with the concerned police station and handed over the goods in the 'supurdagi' of station house officer.
(3.) ON June 3, 2000 seizure order was passed after considering the explanation given by the owner and security of Rs. 1,00,000 (rupees one lac) was demanded for release of the goods by the Trade Tax Department. In the meantime, as F.I.R. had been registered and goods were given in the custody of station house officer of the concerned police station, the dealer applied for release of the goods before the Chief Judicial Magistrate. By order dated June 21, 2000, the Chief Judicial Magistrate directed for release of the goods on furnishing of two sureties of Rs. 2,00,000 each with a rider that goods shall be produced in court as and when required.;