ASHWANI KUMAR MISHRA,J. - (1.) The assessee was a dealer registered on the relevant date, but subsequently its registration appears to have been cancelled. Certain goods being transported by it were seized, and its release has been allowed upon deposit of cash security or bank guarantee to the extent of 40% of the value of goods. Aggrieved by such direction of the Tribunal, the assessee is before this Court.
(2.) Learned counsel for the applicant submits that on the relevant date the assessee was registered and transport of goods was supported by relevant materials including tax invoice/bilty etc., and as such the seizure is bad in law. It is also contended that goods in question were liable to be taxed @ 4% and therefore, the direction to deposit 40% is wholly unwarranted.
(3.) Learned Standing Counsel submits that for valid reasons registration of dealer has already been cancelled, and therefore the State is entitled to protect its interest.;