2015 (5) TMI 208 - HC - VAT and Sales Tax

Detention of goods - vehicle was carrying the goods to warehouse without any documents, hence, the goods were detained - Held that - without setting aside the impugned detention notice, there will be a direction to the petitioner to appear before the respondent along with the Demand Draft for ₹ 1,70,600/- as also a copy of this order and produce the same and the respondent shall receive the same and give liberty to the petitioner to file their objection to the detention notice. The petitioner is directed to file their objection in writing before the respondent within a period of three weeks from the date of receipt of a copy of this order. The respondent shall consider the same and pass a speaking order on merits and in accordance with law - Petition disposed of.

Summary

Issues:
1. Validity of goods detention notice dated 24.01.2014
2. Petitioner's obligation to pay the demanded amount
3. Jurisdiction of the court to entertain the writ petition challenging the detention notice

Analysis:

1. The petitioner sought a writ of certiorarified mandamus to quash the goods detention notice issued by the respondent on 24.01.2014, alleging violation of rules and principles of natural justice. The detention was based on the vehicle carrying goods without proper documents. The petitioner agreed to pay the demanded amount of Rs. 1,70,600, and a cheque was handed over which later bounced due to insufficient funds. The respondent then requested a Demand Draft with interest. The court observed that the petitioner must remit the amount before contesting the detention notice. The petitioner produced a Demand Draft for the full amount without prejudice to contesting the detention notice.

2. The court directed the petitioner to appear before the respondent with the Demand Draft and a copy of the court order. The respondent was instructed to receive the payment and allow the petitioner to file objections to the detention notice within three weeks. The court did not demand interest at this stage, considering the issue to be at a preliminary stage. The order did not set aside the detention notice but provided an opportunity for the petitioner to present objections and for the respondent to pass a reasoned order in accordance with the law.

3. The judgment emphasized the importance of the petitioner fulfilling their financial obligations before challenging the detention notice in court. By complying with the payment demand, the petitioner retained the right to contest the detention notice. The court's decision aimed to ensure procedural fairness by allowing the petitioner to present objections within a specified timeframe and requiring the respondent to consider these objections and issue a decision based on merits and legal principles. The judgment concluded without imposing any costs on either party, thereby resolving the immediate dispute regarding the detention of goods and the payment issue.