1999 (12) TMI 850 - HC - VAT and Sales Tax

Summary

Issues:
Challenge of seizure of tanker of used lubricating oil and writ of mandamus for transportation permit.

Analysis:
The petitioner, a truck driver, was transporting a consignment of used lubricating oil from Calcutta to Jalandhar passing through Uttar Pradesh. At the entry check-post, a sample was taken and deemed not to be used lubricating oil. The authorities detained the goods and issued a seizure order. The petitioner's application under section 13-A(6) was pending when the writ petition was filed.

The counter-affidavit stated that the sample was examined and found to be refined petroleum products, not used lubricating oil. Documents accompanying the consignment indicated the sale from one party to another. The petitioner had applied for a trip sheet for transportation through Uttar Pradesh, as required by law.

The court noted that the goods were meant to pass through Uttar Pradesh to another state, using it only as a corridor. The relevant sections of the U.P. Trade Tax Act and Rules were cited to support the transportation of goods through the state.

The court found that the seizure was not justified as no tax was being avoided, and the goods were meant for transport through the state. The authorities should have mentioned their opinion on the quality of goods in the trip sheet and taken necessary steps to ensure proper transit.

Although the petitioner had a right to appeal under the Act, the court deemed the detention of the tanker unjustified and without jurisdiction. Therefore, the writ petition was allowed, quashing the seizure order and directing the release of the goods. The respondents were permitted to take samples and ensure the proper surrender of the trip sheet at the exit check-post.

In conclusion, the court found in favor of the petitioner, highlighting the importance of not unjustly detaining transport vehicles and exercising extraordinary jurisdiction under article 226 of the Constitution of India when necessary.