2009 (12) TMI 991 - HC - VAT and Sales Tax

Summary

Issues involved: The judgment involves the seizure of goods meant for export to Kabul, Afghanistan, intercepted during transportation from Haridwar to Agra, and detained by the Assistant Commissioner, Mobile Squad, Agra due to missing transit declaration form.

Seizure of Goods: The goods, classified as drugs, were intended for export to Kabul, Afghanistan, through Inland Container Depot in Agra. Despite being accompanied by regular invoice bills, the goods were seized for not having the required transit declaration form, leading to a demand for 40% security of the estimated value for release.

Legal Arguments: The dealer contended that the goods were verifiable, not meant for sale in Uttar Pradesh, and were for further transportation through the Inland Container Depot under the Customs Act. Citing a previous court decision, the dealer argued that the security demanded was excessive and proposed a security amount equal to the tax leviable on the goods.

Court Decision: The court directed the release of the goods upon furnishing security equal to the tax amount applicable to the drugs, set at 4% as per a specific notification. Acknowledging the cancellation of the export order to Kabul, Afghanistan, the court allowed the goods to be taken back to the dealer's unit in Haridwar. It was clarified that any penalty proceedings initiated against the dealer would not be affected by the judgment.