2016 (1) TMI 3 - HC - VAT and Sales Tax

Seizure of truck with goods - Assistant Government Pleader by submitting that the petitioner is only a transporter and that the owner of the goods in question has not come forth and that the respondents apprehend that the owner may not cooperate in the proceedings which may be taken by the respondent authorities - Held that - Interest of justice would be served if the petitioner s truck alongwith goods are released, subject to the petitioner depositing the tax amount at the rate of 15% of the value of the goods in question as assessed by the respondents which comes to ₹ 1,50,000/-. Upon such amount being paid, the respondents shall forthwith release the vehicle in question alongwith the goods, without prejudice to any action that may be initiated by the respondents against the owner of the goods in question under the provisions of the Gujarat Value Added Tax Act. Furthermore, with a view to verify as to whether the goods actually leave the State of Gujarat, the respondent authorities may verify with the Bhilad checkpost at the time when the vehicle in question leaves the border of Gujarat and enters into Maharashtra. It is clarified that the amount of ₹ 1,50,000/- that would be deposited by the petitioner would be subject to ultimate outcome of the proceedings that may be initiated by the respondents. In case no proceedings are initiated, it would be open for the petitioner to seek refund of the said amount. - Appeal disposed of.

Summary

Issues:
Interim relief for goods transportation, liability of transporter, release of goods with tax deposit

Interim Relief for Goods Transportation:
The court considered submissions from both parties regarding the transportation of goods and the liability of the transporter. The petitioner, represented by Mr. Manish Kaji, expressed readiness to pay the duty amount to protect their reputation despite being solely the transporter. The petitioner proposed verifying the goods' movement at the border checkpost to address concerns raised by the respondent authorities. On the other hand, Ms. Maithili Mehta, representing the government, opposed the petition, highlighting that the owner of the goods had not cooperated, raising doubts about potential non-cooperation in future proceedings. After evaluating the arguments, the court decided that the petitioner's truck and goods could be released upon depositing 15% of the goods' value as assessed by the respondents, amounting to Rs. 1,50,000. The release was subject to verification of the goods leaving Gujarat and entering Maharashtra by the authorities. The deposited amount was to be refunded if no further proceedings were initiated by the respondents.

Liability of Transporter:
The case involved a discussion on the liability of the transporter in the transportation of goods. The petitioner, despite being only the transporter, was willing to pay the duty amount to avoid harm to their reputation due to non-delivery of goods. In contrast, the government, through Ms. Maithili Mehta, argued that the petitioner's status as a transporter did not absolve them of responsibility, especially considering the lack of cooperation from the goods' owner. The court acknowledged these arguments but allowed the release of the goods upon payment of the tax deposit, emphasizing that the deposited amount was contingent on any future proceedings initiated by the authorities against the goods' owner under the Gujarat Value Added Tax Act.

Release of Goods with Tax Deposit:
The judgment addressed the issue of releasing goods subject to a tax deposit. The court decided that the petitioner could secure the release of the truck and goods by depositing 15% of the goods' value, amounting to Rs. 1,50,000. This decision was made to serve the interest of justice while ensuring that the goods' movement out of Gujarat was verified by the authorities at the border checkpost. The deposited amount was specified to be refundable if no further actions were taken by the respondents, safeguarding the petitioner's financial interests pending the outcome of any potential proceedings.