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TMI Blog2017 (7) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... such amendment, the words now used in subsection (4) are “seize such goods and detain the vehicle - Under subsection (5) of section 68, the officer6 10 incharge of the checkpost or barrier can after giving owner, driver or personincharge of goods, a reasonable opportunity of being heard and holding an inquiry, impose penalty in addition to tax payable under the Act at the prescribed rates. The penalty would not exceed one and a half time of the tax for possession of the goods so seized. Here also, by virtue of the same Amendment Act, the words one and half time of tax for possession of goods or vehicle so seized, the legislature has deleted the words “or vehicle”. Under clause (b) of subsection (5) again, the reference to releasing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remain intact. It is clarified that if there is cost in offloading the goods from the vehicle, the same shall be borne by the petitioner - petition allowed - decided in favor of petitioner. - SPECIAL CIVIL APPLICATION NO. 12705 of 2017 - - - Dated:- 14-7-2017 - MR. AKIL KURESHI AND BIREN VAISHNAV For The Petitioner : Mr Dk Nakrani, Advocate, MS Kaushal D Nakrani, Advocate For The Respondent : Mr.Pranav Trivedi, AGP ORAL JUDGMENT ( PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Petitioner has challenged an order dated 25.01.2017, passed by the respondent no.1 Assistant Commissioner of Commercial Tax, under which, the State authority in purported exercise of powers under section 68(4) of the Gujarat Value Added Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in bogus billing activities. The present petitioner had in the past also transported such goods in the name of National Industries. The proprietor of National industry is untraceable and absconding. An FIR is therefore lodged before the Navrangpura police station against the person behind the Kiran transportation the present transporter and the National industry. 6. Short question is, can the Value Added Tax Authorities, under such circumstances seize the vehicle. The respondents press in service the provisions of section 68 of the Gujarat Value Added Tax Act. This provision pertains to inspection of goods in transit. Relevant portion of section 68 reads as under: (4)(a)If the officerincharge of the checkpost or barrier is of the opin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnishing such security in such form as may be prescribed. (6) The officerincharge of the check post or barrier may, during inspection and verification of goods under transport including the documents and records relating thereto, direct the carrier not to part with the goods including retransporting or rebooking until verification of goods, records and documents is done or inquiry, if any, is completed. (7) Where the person from whose possession or control the goods are seized under subsection (4) fails 'to establish the ownership of the goods so seized or the payment of tax, interest or penalty is not made or security is not furnished, the Commissioner may direct that the goods so seized may be sold by public auction and sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 68, the officer6 10 incharge of the checkpost or barrier can after giving owner, driver or personincharge of goods, a reasonable opportunity of being heard and holding an inquiry, impose penalty in addition to tax payable under the Act at the prescribed rates. The penalty would not exceed one and a half time of the tax for possession of the goods so seized. Here also, by virtue of the same Amendment Act, the words one and half time of tax for possession of goods or vehicle so seized, the legislature has deleted the words or vehicle . Under clause (b) of subsection (5) again, the reference to releasing of the goods and vehicle is now limited to release of goods alone. 9. Subsection (7) was added to section 68 by the Amending Act 6 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion would be that against the seizure power which could be for indefinite period, unless curtailed by statutory provision, detention would be a temporary measure. The very fact that the legislature has provided the manner in which the seized goods would be dealt with in the subsections following subsection (4) of section 68, but has not made any provision with respect to the detained vehicle, would be sufficient indication suggesting that as soon as the preliminary inquiry and other followup checkups are over, the detained vehicle would be released. At any rate, there cannot be detention of vehicle over indefinite period directly bringing the action of the authority within the fold of seizure of the vehicle, a power which was consciously w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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