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2016 (2) TMI 481 - HC - VAT and Sales TaxTransport of goods with insufficient documents - Detention of a vehicle with goods is an extreme measure and unless supported by strong materials, would result into damage that can be irreversible. At the same time, the question of safeguarding the interest of Revenue would also arise in case where the dealers or the transporters may not have a permanent base in the State and, therefore, often times may not be possible to be traced at the time of assessment. - Goods to be released subject to conditions.
Issues:
Challenge to detention of goods by authorities based on insufficient documents. Analysis: The petitioner challenged the detention of his truck carrying ceramic tiles for interstate sale, originating from Rajasthan to Maharashtra, due to insufficient documents. The counsel argued that the truck had all necessary documents, questioning the authority of the Value Tax department to detain the vehicle. The court acknowledged that detaining a vehicle with goods is a serious measure, potentially causing irreversible damage. However, the interest of Revenue must also be safeguarded, especially when dealers or transporters lack a permanent base in the State, making tracing difficult during assessment. The court decided to release the truck with goods under certain safeguards and directions. Firstly, the petitioner was instructed to deposit an amount calculated at a 15% tax rate on the dealer's price with the authorities by a specified date. This amount would remain deposited towards potential tax liabilities pending assessment. Additionally, the petitioner had to provide detailed information about the dealer from whom the goods originated and the dealer to whom they were to be delivered. Proof of delivery was required to be submitted to the department by a set deadline. The department was directed to conclude assessment proceedings promptly, preferably within three months. Ultimately, the petition was disposed of accordingly, with direct service permitted for the order.
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