2018 (2) TMI 1475 - HC - Indian Laws

Transportation of Ready mix plaster - Prohibition to transport sand beyond border - It is the grievance of the Petitioners that though the vehicles were seized and taken to the Police Station, the Revenue authorities have not followed the procedure prescribed under sub-Section 8 of Section 48 of the Maharashtra Land Revenue Code, 1966. Held that - it is mandatory for the Revenue Officials to produce attached vehicles before the Collector within a period of 48 hours. This seizure of vehicles, without verifying whether the act alleged is an offence or violation of any of the regulations, and failing to produce it before prescribed authority to facilitate its release causes great prejudice and also financial loss to the owner. Apart from the harassment caused on account of illegal actions of the Revenue Officials in seizing vehicles and goods, there is failure to observe provisions of Section 48 (8)(2) of M.L.R.Code - Apart from this, the mandate of Section 48-8(2) of the Act has also not been followed by the Revenue Officials. In the circumstances, while directing the release of the seized vehicles as well as the material attached, we direct the Respondent State to deposit the costs of ₹ 10,000/- in each Writ Petition, in this Court within a period of four weeks from today. Petition disposed off.

Summary

Issues:
1. Interpretation of instructions prohibiting transportation of Ready mix plaster from one state to another.
2. Applicability of GST on the final product.
3. Legality of circular issued by the Collector.
4. Seizure of vehicles and failure to follow prescribed procedures.

Interpretation of Instructions:
The Petitioners challenged instructions by the Collector prohibiting transportation of Ready mix plaster from Gujarat to Maharashtra, citing a notification applicable to sand, not the final product. The Petitioners argued the product was Ready mix plaster, containing sand and fly ash, not solely sand. They contended GST was paid on the final product, not on sand. The Court held the policy for sand transportation couldn't apply to Ready mix plaster, quashing the circular.

Applicability of GST:
The Petitioners highlighted a Gujarat High Court case where Ready mix plaster was processed sand attracting GST. The State argued the product was black sand. The Gujarat High Court declared rules restricting transportation of sand null. The Bombay High Court noted the Petitioners paid 18% GST on the final product, not on sand, leading to the circular's quashing.

Legality of Circular:
The circular relied on a quashed Gujarat notification, making it irrelevant. The Court emphasized the importance of adhering to legal judgments, especially when transporting different products. The circular was quashed due to its improper basis, and consequential actions were also annulled.

Seizure of Vehicles and Procedures:
The Petitioners criticized Revenue Officials for seizing vehicles without following prescribed procedures, causing financial losses and prejudice. The Court noted the failure to produce seized vehicles before the authorized officer within 48 hours, as required by law. It directed the State to deposit costs and emphasized adherence to legal procedures to prevent unjust seizures and harassment.

In conclusion, the Court disposed of the Writ Petitions, emphasizing the importance of following legal procedures, quashing the circular, and directing the State to deposit costs for improper actions.