2015 (3) TMI 1177 - HC - VAT and Sales Tax

Seeking release of vehicle on suitable condition forthwith - so-called purchase of the goods was dummy by non-genuine person - truck in which the goods were transported, was detained, but no arrangements were made to seize the goods and unload the goods by the authority, so that the goods can be kept in the Government godown and release the truck - Petitioner contended that there is no power to seize the transport vehicle and the goods can be seized and may be kept by them at any place, wherever the respondents desirous to keep. Held that - the authority has power to detain the vehicle, but ultimate power is to seize the goods and receipt is to be given to the person, from whose possession the goods are seized. With a view to have the seizure of the goods, vehicle can be detained, but there is no power to seize the vehicle. The power given to detain the vehicle is to facilitate the seizure of the goods and it cannot be termed as the detention for indefinite period. The reasonable interpretation would mean that once the goods are found in any vehicle and upon inquiry if it is found unsatisfactory, the authority may seize the goods after detaining of the vehicle and after the seizure of the goods, the goods may be kept by the authority at any place wherever it is permissible, but the vehicle is required to be released thereafter. In the present case, nothing has been done and the vehicle with the goods is lying at the Bhilad Check Post and the said aspect is undisputed. Also the vehicle has been detained since 28th December, 2014 and no action is taken for seizure of the goods or for release of the vehicle. Therefore, the appropriate direction deserves to be issued to the respondents to take the vehicle truck up to the nearest Government godown. It may be open to the respondents to seize the goods by unloading the same in the Government godown within 48 hours from today, copy of the seizure memo should be given to the truck driver or the owner, as the case may be and the truck be released thereafter immediately. - Petition disposed of

Summary

Issues:
Petition to quash memo for release of detained vehicle under Gujarat Value Added Tax Act, 2003.

Analysis:
The petition sought to quash a memo dated 28.12.2014 to release a vehicle detained by the respondent authority. The goods in question were transported from Mangalore, and upon entering Gujarat, the documents produced by the driver were deemed unsatisfactory. The respondent authority detained the truck but did not seize the goods, leading to the vehicle's continued detention. The petitioner argued against the seizure of the vehicle, suggesting that only the goods could be seized. The respondent cited Section 68(4)(b) of the Gujarat Value Added Tax Act, 2003, granting power to seize goods and detain vehicles. The court interpreted the section, highlighting that the authority could detain the vehicle to facilitate the seizure of goods, but the ultimate power lay in seizing the goods. The court emphasized that the vehicle's detention was not indefinite and should lead to the goods' seizure. The court directed the respondents to take the truck to the nearest Government godown, seize the goods within 48 hours, and release the truck immediately thereafter.

The court noted that the vehicle had been detained since 28th December 2014 without any action taken for seizing the goods or releasing the vehicle. The court issued a direction for the respondents to release the truck by unloading the goods in the Government godown and seizing the goods by 6.3.2015. This direction was given without prejudice to the respondents' rights to recover taxes, penalties, or conduct further investigations as per the law. The court disposed of the petition accordingly, with no order as to costs. The learned AGP assured the court of communicating the order to the concerned officer for compliance.