ASHWANI KUMAR MISHRA,J. - (1.) This revision has been filed by the revenue challenging an order passed by the learned Member, Commercial Tax Tribunal, Gorakhpur, whereby assessee's appeal has been allowed and seized goods has been directed to be released.
(2.) It transpires from the records that assessee transported certain goods through transport vehicle bearing registration no. UP 78 CN 3188, which arrived at the entry check post in the State of U.P. on 6.10.2016. The vehicle had requisite papers and details of transit forms have been annexed. However, the authorities found that this very vehicle had previously entered the State on 12.8.2016 and there was no document available on record to demonstrate that this vehicle had exited the State thereafter, and in such circumstances, the authorities were of the opinion that previous transaction had not formalized and accordingly proceedings for seizure were undertaken. The assessee filed an appeal/representation stating that in respect of previous transaction, in case authorities found that due observations of law had not been followed, then it was open for the authorities to proceed against the transaction undertaken previously, but it could not be a ground to initiate proceedings for seizure against the present assessee, particularly when there was no allegation of violation of law at its hand. Representation was rejected, against which second appeal was preferred, which has been allowed by the tribunal. Tribunal has relied upon a decision of this Court in Seema Enterprises, Canal Avenue v. Commissioner, Commercial Tax, U.P., Lucknow: 2013 NTN (52) 237 in order to hold that even if the allegations are taken to be correct, then also doubts are raised upon legality of previous transaction and it was open for the authorities to proceed against it, but for such reasons, seizure order can be passed against the assessee.
(3.) Learned counsel for the State submits that authorities had a bona fide doubt with regard to genuineness of transaction, and therefore, order of seizure has been validly passed. It was open for the assessee to explain its stand and contest the matter at the stage when appropriate proceedings are drawn, and no interference is required at this stage of the proceedings.;