2012 (11) TMI 1050 - HC - VAT and Sales Tax

Summary

Issues involved: Illegal seizure of goods based on apprehended intention to sell, non-deposit of form 16, reduction of security amount by Deputy Commissioner, Tribunal's decision to uphold seizure

Illegal Seizure based on Apprehended Intention to Sell:
The High Court addressed the case where PVC granules were seized from a truck despite all required documents being available with the driver. The goods were to be delivered at Roorkee but were seized on a different route. The Tribunal upheld the seizure based on the apprehension that the driver intended to sell the goods to industries at a different location. The Court emphasized that mere apprehended intention to sell, without concrete evidence, does not justify seizure when goods are duly accounted for.

Non-Deposit of Form 16 and Seizure:
The Court noted that the goods in question were accompanied by all relevant documents, including form 16. However, the form 16 was not deposited at the nearest office as required. Despite this technical breach, the Court clarified that the mere non-submission of form 16 does not automatically render the goods untraceable to a bona fide dealer or raise doubts about their proper accounting. The Court deemed the seizure in this case as illegal and directed the release of goods without any security requirement.

Reduction of Security Amount by Deputy Commissioner:
After the goods were seized, a substantial security amount was imposed for their release. Subsequently, an application was made to reduce the security, which the Deputy Commissioner (Enforcement) partially granted. However, upon further appeal, the Deputy Commissioner refused to make any further adjustments. The Court ultimately set aside the seizure and directed the release of goods without any security requirement, emphasizing that the seizure itself was unwarranted.