2017 (4) TMI 506 - HC - VAT and Sales Tax

Release of detained truck and goods - The amount of tax on the goods imported is already deposited/paid by the common petitioner - GVAT - Held that - The truck and goods detained shall be released on furnishing the bank guarantee of ₹ 1,04,000/- . However, the aforesaid arrangement shall be without prejudice to the rights and contentions of the parties in appeal that may be filed under Section 68 5 of the Act.

Summary

Issues:
- Detention of truck and goods due to non-filing of Form 403
- Imposition of penalty under Section 68 [5] of the Gujarat Value Added Tax Act, 2003
- Direction for release of truck and goods on furnishing a bank guarantee
- Timeline for filing appeals and consideration by the appellate authority
- Disposal of Special Civil Applications

Detention of Truck and Goods:
The petitioner filed writ petitions under Article 226 of the Constitution of India seeking the release of a truck and goods detained by the respondent due to the non-filing of Form 403 at the time of entry into the State of Gujarat. The order imposed a penalty of approximately ?2,08,000 under Section 68 [5] of the Act, with a determination of tax liability pending final assessment. The petitioner had already paid the tax on the imported goods, and the court directed the petitioner to challenge the order before the appellate authority.

Imposition of Penalty and Release on Bank Guarantee:
The court ordered the release of the truck and goods upon furnishing a bank guarantee of ?1,04,000, equivalent to half the penalty amount. The petitioner agreed to provide the bank guarantee, and the release was directed without prejudice to the parties' rights in the pending appeal under Section 68 [5] of the Act.

Timeline and Consideration of Appeals:
The court set a timeline for filing appeals within two weeks, ensuring their consideration by the appellate authority without limitations on grounds of delay. Appeals were to be decided within three months from the date of receipt, emphasizing a prompt resolution in accordance with the law.

Disposal of Special Civil Applications:
The Special Civil Applications were disposed of with the direction for release on a bank guarantee, adherence to the appeal process, and a timeline for resolution. The notice issued in each case was discharged, concluding the matter before the court.