Kumar Traders And Company Versus State of Assam
GST
2017 (9) TMI 749 – GAUHATI HIGH COURT – 2017 (4) G. S. T. L. 120 (Gau.)
GAUHATI HIGH COURT – HC
Dated:- 9-8-2017
W.P. (C) No. 4785 OF 2017
GST
Mr. Hrishikesh Roy, J.
For The Petitioner : Ms. M. L. Gope, Ms. N. Hawelia Ms. N. Gogoi and Mrs. N. Bordoloi, Advocates
JUDGMENT
This case was adjourned on 9.8.2017, to enable the learned Govt. Advocate to receive instruction on the circumstances under, which the team from the Bureau of Investigation for Economic Offences (BIEO) had raided the Amingaon godown of the petitioners, where areca nuts are stored. The facts leading to the search and seizure were noted by the Court as under:-
“The interest of the petitioners in all 3 cases are common and similar arguments are advanced by the learned counsel Ms. M.L. Gope. The petitioners are registered under the Goods and Service Tax Act, 2017 (hereinafter referred to as the “GST Act”) and earlier they were registered under t
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for continuing with their, business under the GST regime.
3. The grievance of the dealers is the unauthorised inspection, search and seizure of their godown at Amingaon, by the authorities of the Bureau of Investigation for Economic Offences (BIEO) Officers on 27.07.2017, who have seized around 7290 bags of Dried Areca Nuts, under the 2 seizure lists dated 27.07.2017. The seizure party led by the Deputy S.P. of the BIEO have also asked the dealers to submit around 15 documents, which may have no relevance for the business, under the GST regime.
4. The petitioners contend that this is an unnecessary intervention by an incompetent authority. In fact, the bonafide of the seizure is also questioned on account of the threat meted out to the petitioners, for their inadequate donation to certain organization in Assam.
5. The learned counsel Ms. M.L. Gope for the petitioners submits that when the GST regime is at a nascent stage and requisite infrastructure is not yet ready for e-way bil
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re that the petitioners should not be put to further harassment on account of the search and seizure made on 27.07.2017.
A copy of this order be furnished to Mr. B. Gogoi, the learned standing counsel and Ms. K. Phukan, the learned Govt. advocate”.
2. Ms. K. Phukan, the learned Govt. Advocate has received instruction from the BI(EO) authorities and she submits that the police team raided the godown in purported exercise of power, under Section 102 of the CrPC. She further submits that the BI(EO) team suspected that the areca nuts stored in the godown, were of Burmese origin and were smuggled through Mizoram border and was stored in the Guwahati godown, for onward transportation to other parts of the country.
3. Mr. D. Saikia, the learned Addl. Advocate General, Assam submits that collection of tax and prosecution of defaulters, is the responsibility of the Finance & Taxation Department and the areca nuts are liable to be taxed under the Assam Goods & Service Tax Act, 2017. The lea
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l. The learned Govt. Advocate Ms. K. Phukan, accepts notice for respondent Nos.3, 4 & 5. Necessary extra copies be furnished to all the three lawyers.
6. In the interim, to facilitate the petitioners to carry on their legitimate business and taking note of the fact that rate of tax is @2.5% for areca nuts, under the Assam Goods & Service Tax Act, 2017 and they are to pay further 2.5% tax to the Central Govt. coffer, subject to the petitioners' furnishing Bank guarantee for Rs. 30 lakh towards the estimated tax, to the Commissioner of State Tax (respondent No.2), the seized goods should be released to the custody of the petitioners. The 7290 bags of areca nuts, after due verification should be released, in presence of the Tax Department Officials. However the transportation and business of areca nuts will be subject to realization of due tax by the authorities and the Bank guarantee, ordered to be deposited, is only on estimation and is not on quantification of the payable tax. The
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