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Judgment
Heard Shri Jaideep Narain Mathur, learned senior counsel for the petitioner and Shri H.P. Srivastava, learned Additional Chief Standing Counsel for the respondent department.
The petitioner company is engaged in the business of ecommerce and has undertaken certain transactions with regard to which certain entry tax having not been deposited in advance is the subject matter of dispute.
A supplementary affidavit has been filed today bringing on record the notice issued under the Vat Act whereby the petitioner has been called upon to show cause and provide relevant information in relation to transactions for further proceedings in the matter and for passing an order relating to the seizure of the goods. A mobile squad and SIB wing conducted raids at several places of the petitioner and has sealed their godowns taking into custody various consignments on account of such alleged violation of nonpayment of entry tax. On being put to notice the petitioner has been called upon to make good the deficiency and also face the proceedings.
The petitioner has come up before this Court urging that the respondent authorities should be directed to open the seals of the godowns and release the goods as this shall vitally affect their business and for that Shri Mathur on the basis of the instruction received has urged that the petitioners undertake to deposit the entire entry tax that may be leviable in terms of the assessed amount of the goods as contained in the notice. He further submits that the petitioner shall complete all the formalities and give a reply to the show cause notice where after orders can be passed by the appropriate authority, but at the instant stage, on such deposit being made, the godowns should be unsealed and the consignments should be released.
Shri H.P. Srivastava submits that the final seizure order has to be passed in terms of Section 48 of the Vat Act after submission of the reply and therefore if the petitioner is prepared to deposit the tax as demanded and raised on the strength of the notice issued, then in that event the godowns can be unsealed and the goods released subject to any orders being passed finally in terms of Section 48.
Having considered the submissions raised, we direct the petitioner to deposit the tax before the Deputy Commissioner, respondent no. 4 and in the event such deposit is made in terms of the show cause notice issued, by tomorrow, the said respondent shall pass appropriate orders for desealing the godowns and release of the consignments subject to the outcome of the orders to be passed after the show cause notice is replied with and other formalities are completed by the petitioner. Copy of the order today.
The writ petition is disposed of with the aforesaid directions.