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M/S Startrek Logistics Private Limited vs The State Of Bihar & Ors on 22 January, 2013

Bench: Chief Justice, Ahsanuddin Amanullah

                  IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No. 395 of 2013
               ======================================================
               M/S Startrek Logistics Private Limited, a Company incorporated under the
               provisions of Companies Act, 1956 having its Head Office at 9/1, Prasanna
               Complex, Mission Road, Bangalore 560006 and one of its Branch
               Office/Hub At Rectangle No. 14, Villa No. 4, Raliawas, Tahsil and District
               Rewadi, Haryana (Daruhera) Raliawas through, Depot Operation Manager,
               Amarendra Kumar, S/O Shri Birendra Kumar R/O C-38, T.P. Nager, P.S.
               Sarojini Nagar, Dist. Lucknow U.P.
                                                                        .... ....   Petitioner
                                                  Versus
               1. The State of Bihar through the Principal Secretary cum Commissioner of
                 Commercial Taxes, Bihar, Patna.
               2. The Joint Commissioner of Commercial Taxes (Admn.), Magadh
                  Division, Gaya.
               3. The Deputy Commissioner of Commercial Taxes Composite Check Post,
                  Karmnasa, Dist. Kaimur (Bhabhua).
               4. The Commercial Taxes Officer, In-Charge, Karmnasa Composite Check
                  Post, Karmnasa, Kaimur, Dist. Kaimur (Bhabhua).
                                                                      .... .... Respondents
               ======================================================
               Appearance :
               For the Petitioner        :   Mr. Gautam Kejriwal &
                                             Mr. Akash Chaturvedi, Advocates.
               For the Respondents       :   Mr. Lalit Kishore, A.A.G. 1.
               ======================================================
               CORAM: HONOURABLE THE CHIEF JUSTICE
                          and
                          HONOURABLE MR. JUSTICE AHSANUDDIN AMANULLAH
               ORAL ORDER
               (Per: HONOURABLE THE CHIEF JUSTICE)


4. 22-1-2013

This Petition filed under Article 226 of the 2 Patna High Court CWJC No.395 of 2013 (4) dt.22-01-2013 2/3 Constitution by the petitioner, a transporter, arises from the order dated 28th November 2012 passed by the Assistant Commissioner of Commercial Taxes, Integrated Check Post, Karmnasha, Kaimur, Bhabhua in exercise of power conferred by Section 60(4)(a) read with Section 60(2) read with Section 56(4)(b) of the Bihar Value Added Tax Act, 2005 (hereinafter referred to as "the Act").

It appears that the transporter hired the offending vehicle to transport certain goods. According to the transporter, the goods were consigned from Haryana and were destined to Jharkhand. En-route the vehicle had to pass through the State of Bihar. While entering the State of Bihar the vehicle was detained by the respondent authorities at Karmnasha Check Post. On enquiry by the respondent authorities, the driver of the vehicle produced a Transit Pass. The said Transit Pass was found to be doubtful as much as it was generated somewhere near the border and it did not reflect the correct information in respect of the consignor and the consignee. For want of correct information, the respondent authorities seized the vehicle and the goods under the power conferred by Section 56(4)(b) of the Act. After following due procedure, under order dated 28th November 2012, the respondents have computed the hypothetical value of the goods at Rs.42,95,242.00 and the tax payable at Rs.5,01,494.73. The respondents have imposed the penalty three times the tax payable i.e. Rs.15,04,484.00. Therefore, this Petition.

Learned advocate Mr. Gautam Kejriwal has appeared for the petitioner. He has assailed the impugned order dated 28th November 2012; the imposition of the penalty and the action of the seizure of the goods.

It is not in dispute that against the impugned order the statutory remedy lies under Section 72 of the Act.

We are informed at the bar that for the incidence in question an F.I.R. has been filed and the case is pending in the Court of Chief Judicial Magistrate, Kaimur at Bhabhua.

The petitioner may avail of the statutory remedy against the impugned order within two weeks from today.

The respondents will facilitate the release the goods seized and now under the custody of the Court on condition that the petitioner pays a sum of Rs.7,00,000.00 (Seven lakhs) towards the penalty imposed under the impugned order dated 28th November 2012 and gives a bank guarantee for the remaining amount of penalty. It is further directed that the petitioner will transport the goods through the State of Bihar within seventy two hours of the entry and without unloading the said goods or any part of it in the State of Bihar.

Subject to above direction, the Petition stands disposed of.

Copy of the order will be sent to the Assistant Commissioner of Commercial Taxes, Karmnasha, Kaimur, Bhabhua by FAX message at the cost of the petitioners.

(R.M. Doshit, CJ) (Ahsanuddin Amanullah, J) Pawan/-