- (1.) This is an Article 226/227 proceeding against an order dated 1st April 2009 of the West Bengal Taxation Tribunal. By that order a penalty of Rs.63,32,625/- has been imposed on the writ petitioner, reducing the penalty of Rs.3,16,63,140/- imposed by the Sales Tax Officer by his order dated 9th January 2009. The case arises out of the West Bengal Value Added Tax Act, 2003 (hereinafter the said Act) and the Rules framed thereunder. The issue is very short but quite important.
(2.) Short fact which led to filing of the present proceedings is stated hereunder:- On 17th April 2006 Bokaro Steel Plant awarded a contract in favour of Inox Air Product Limited "Inox". The contract related to erection of a 1250 TPD Oxygen Plant at Bokaro Steel Plant which included importation of separate parts of a system or plant which when put together would constitute an air separation plant. The port of importation was to be Kolkata port. It appears from the records that 'Inox' on 18th April 2006 subcontracted some of its obligations in favour of BOC India Limited, namely, transporting the imported plant from Kolkata to Bokaro Steel Plant. The entire Oxygen plant was imported in parts, packed into ten containers.
(3.) After arrival in Kolkata Port these containers had to be transported to Bokaro. The petitioner is a clearing and forwarding agent. Transportation of these goods was effected by mounting them into 11 trailers. In the process the petitioner became consignor and 'Inox' at Bokaro was the consignee of the goods, in the carriage of these goods by road by these eleven trailers from Kolkata to Bokaro. In the instant case, it was noticed by the authorities that four such transit declarations issued to the petitioner from the check post at the commencement of the transportation that is TD No. 1082, 1083, 1085 and 1086 were not endorsed at the last check post in West Bengal i.e. Duburdih check post before exit of the vehicle. Accordingly, a show cause notice was issued under Section 79 of the said Act, dated 3oth September 2008, since the goods had been used and not available for seizure.;