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TMI Blog2013 (4) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... at only if penalty is not paid within the time specified in Sub-Rule (8) can cash security which has been furnished be adjusted against penalty under Sub-Rule (a).Likewise under clause (b), if any other security or bond has been furnished, the Officer is to take steps for reaslising the amount from the security and adjust the same towards penalty, and expenses and incidental charges after the waiting period is over. Thus without waiting for the expiry of the period mentioned in section 47(8), even if the goods have not been seized, and on the other hand the goods have been released under section 47(2) on furnishing either cash security or any other security, the security can be enforced only after the expiry of 30 days. This is the unambiguous declaration of law, contained in the Rules. Therefore having regard to the stand taken by the learned Government Pleader also it becomes necessary to grant relief to appellant in this case directing that the security furnished in this case namely the bank guarantee can be realised or enforced and adjusted towards the penalty and expenses and incidental charges only if penalty is not paid within the time specified in subsection 8 of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the security which was collected from the appellant be converted into penalty. The Bank was to make immediate arrangement to forward the DD within three days of the receipt of the order. Annexure-2 dated 7.6.2007 is a letter from the Sales Tax Officer to the appellant company with a copy to the manager referring to Annexure-1 order inter alia and noting that the appellant has not remitted the penalty amount till date and to make the arrangements to forward the DD for Rs.21 Lakhs within three days from the receipt of the letter inter alia. 5. Learned counsel for the appellant drew our attention to section 47(8) of the Act, which reads as follows: "47. Procedure for inspection of goods in transit.- (8) If the owner of the goods or his representative or the driver or other person in charge of the vehicle or vessel does not furnish security or execute the bond as required under sub-section (2) within fourteen days from the date of stopping the vehicle or vessel under sub-section (1), the officer referred to in that sub- section may, by order, seize the goods, and in the event of the owner of the goods not paying the penalty imposed under sub-section (6) within thirty days from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter will be kept pending and orders of penalty will not be implemented. He also contended that in case cash security is given, it is to be converted as penalty and there is no waiting period as provided under the Act. 8. Next, he would draw our attention to Sub Rule 8 of Rule 67. Rule 67(8) reads as follows: "67. Procedure for inspection of goods in transit:- (8) Where an order imposing penalty has been passed and the owner of the goods or his representative or the driver or other person in charge of the vehicle or vessel has paid the amount of penalty together with the expenses and other incidental charges for keeping the goods seized in custody and for the service and publication of the notice under sub-section (6) and (10) of section 47 and the order under clause (d) of sub-rule(7) of this rule to the Officer imposing the penalty, such officer shall pass an order directing the release of the goods seized or of the security or bond furnished, as the case may be." 9. We are of the view that there is no merit in the contention raised by learned Government Pleader. Section 47 comes under the heading 'Procedure for inspection of goods in transit'. It inter alia provides th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecurity or execute bond as required under sub section (2), to which we have already referred, within 14 days from the date of stopping the vehicle. In such an event, the Officer may, by order, seize the goods and if the penalty is imposed, he must wait for a period of 30 days and see whether the person is paying the penalty or not. If the penalty is not paid, then alone he can proceed to get the penalty realised by way of sale of seized goods. Thus Section 47 contemplates initially detaining the goods. The goods which are detained may be released under section 47(2) on furnishing security or bond or on realisation of tax as the case may be. It is in respect of goods which are detained, and which have not been got released on furnishing security, that the Officer can seize the goods. Therefore, obviously detaining and seizing goods are two different concepts. But the question which we are concerned with is whether the waiting period of 30 days mentioned in section 47(8) is confined only to cases where the goods are seized. Goods are seized, as we have already noted for the reason that party concerned has not furnished the security. In a case where the party furnishes security, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee or persons concerned can delay the realisation of penalty. We are dealing with a case of penalty. The law permits the party concerned to avail of the statutory remedy. That is the right given to the parties which they are free to avail. The Appellate Authority or other authority is always armed with ample powers to pass interim orders. Such interim orders can always be conditioned by appropriate conditions to safeguard the interest of party and the Revenue. 13. Therefore we are of the view that having regard to the stand taken by the learned Government Pleader also it becomes necessary to grant relief to appellant in this case. We feel that we should direct that the security furnished in this case namely the bank guarantee can be realised or enforced and adjusted towards the penalty and expenses and incidental charges only if penalty is not paid within the time specified in subsection 8 of section 47 as provided in Rule 67(9) of the Rules. Needless to say, we make it clear that it will always open to the Officer to take note of the legal position and to impose appropriate condition in regard to the conditions about security, so that interest of the Revenue is also no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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