9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 550 - HC - VAT and Sales TaxDetention of trucks on the premise that the trucks were carrying beetlenuts which the authorities believed was for sale in the State of Gujarat. Since no tax was paid, the goods alongwith trucks have been seized. - petitioner submitted that the goods were in transit through the State for sale at Div and that, therefore, would not invite any duty. - Held that - Upon the petitioner depositing the sum of ₹ 65,000/- lacs for each truck and further providing security to the extent of 25% thereof, the trucks and the goods shall be released. The respondents shall initiate the proceedings for assessment of tax as early as possible and complete the same preferably by 31.03.2016.
Issues Involved:
Detention of goods for possible duty liability under VAT Act. Analysis: The judgment dealt with two petitions concerning the detention of two trucks carrying beetlenuts by VAT Authorities in Gujarat. The detention was based on the belief that the goods were meant for sale in the state without payment of taxes. The petitioner argued that the goods were in transit for sale elsewhere and should not attract duty. Additionally, the detention was challenged as unauthorized under Section 68 of the VAT Act, with the petitioner claiming that show-cause notice proceedings had not been initiated, making it impossible to ascertain duty liability at that stage. The respondent, represented by the AGP, contended that specific information led them to believe the goods were intended for sale within Gujarat. The court noted that the goods in each truck were valued at Rs. 13 lacs, and considering this, the goods along with the trucks should be released on reasonable conditions. The petitioner could potentially be required to pay duty with a maximum penalty of 150% of the duty element, which may not be imposed in all cases. The AGP estimated the duty liability for each truck at approximately Rs. 65,000. The court ordered the release of the trucks and goods upon the petitioner depositing Rs. 65,000 for each truck and providing additional security. The authorities were directed to initiate tax assessment proceedings promptly and complete them by a specified date. The amount deposited would be adjusted towards any duty or penalty liability arising from the assessment, subject to further appeals. Ultimately, the petitions were disposed of, providing a resolution to the detention and outlining the steps for further proceedings and release of the goods.
|
