Non Disclosure of Godowns and Non Payment of Tax Demonstrated Misconduct: Allahabad HC denies relief [Read Order]

The Allahabad High Court has denied any relief to the petitioner as there was a nondisclosure of godowns and non-payment of tax which ultimately demonstrated misconduct on the part of the petitioner.

In the case of M/s Ashu Traders Madar Gate Aligarh vs. Union of India, it was observed that the counter affidavit clearly reflect misconduct after the goods were seized and in further inquiry, it was revealed that there were 3 undeclared godowns and the petitioner non-payment of any tax or penalty or bond or security but also failed to appear in the proceedings on the fixed date. The rejoinder affidavit filed by the petitioner was vague and evasive.

The petitioner, in this case, filed a writ petition against the seizure of goods which was undertaken by the Deputy Commissioner (Special Investigating Branch), Commercial Tax. Through the writ petition, the petitioner not only challenged the order pertaining to seizure but also requested the release of the goods seized. The various affidavit and counter-affidavit were filed from both sides in this respect.

The issue raised in this case was whether the petitioner was eligible for any relief pertaining to the release of seized goods or not?

The Division Bench of the High Court of Allahabad comprising of Justice Biswanath Sommadder and Justice Yogendra Kumar Srivastava observed that “the counter-affidavit clearly reflect misconduct after the goods were seized and in further inquiry, it was revealed that there were 3 undeclared godowns and the petitioner not only paid any tax or penalty or bond or security but also failed to appear in the proceedings on the fixed date. Therefore the court in no case can use its discretionary jurisdiction under Article 226 of the Constitution of India and the petition was dismissed on this note”.