MARBLE AND TILES TRADERS ASSOCIATION OF SILIGURI Vs. CTO SILIGURI CHARGE

JUDGEMENT

(1.) PETITIONER No. 3, Shri Manoj Sharma, proprietor of M/s. Brindabwan Marbles, is carrying on business of reselling marbles in the trade name of Brindabwan Marbles in Siliguri. In this present application petitioner No. 3 has sought to challenge the order of seizure dated December 11, 2007 and the consequent penalty order dated December 11, 2007 passed by the Sales Tax Officer, Dalkhola check -post. Marbles and Tiles Traders' Association of Siliguri of which petitioner No. 3 is a member and Mr. Dilip Kumar Baid, the constitute attorney of the Association have also joined as petitioner, alleging unnecessary harassment of marble dealers by the officers of the Dalkhola check -post.

(2.) PETITIONER No. 3 in course of his business imported three consignments of various types of marbles from Rajasthan. The said consignments entered West Bengal through Dalkhola check -post on December 10, 2007. All the required documents including way bill, invoices, consignment notes, etc., were produced. In spite of production of all the required documents, the Sales Tax Officer, Dalkhola check -post detained the vehicle carrying the consignments on the allegation of undervaluation. On the next date, i.e., December 11, 2007, the Sales Tax Officer seized the consignments of marbles on the same ground of undervaluation. In the order of seizure it was recorded that as per market verification report the price of the marble slab is much higher than that of the price declared in the way bills. No market verification report was disclosed or handed over to the petitioners. On the same day, i.e., December 11, 2007, the Sales Tax Officer proceeded to impose penalty. Petitioner No. 3 appeared before him and submitted in writing that the value of the goods was correctly declared in the way bills. The Sales Tax Officer imposed a penalty of Rs. 10,982 merely recording "unsatisfied over the submission of Shri Manoj Kumar, I impose penalty under Section 77 of the West Bengal Value Added Tax Act, 2003 on the excess value"

(3.) IT appears to us that there was no material before the Sales Tax Officer on the basis of which he could entertain even a suspicion that the goods were undervalued. The concerned officer did not have with him the wholesale price of similar goods in Rajasthan. It is needless to mention that sale price in West Bengal is wholly immaterial and an allegation of undervaluation can be made only upon verification of the wholesale price prevailing in Rajasthan at the material point of time. Moreover it is well known that price of marble slabs depends upon various factors including quality, size, thickness, etc.