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TMI Blog2022 (2) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) TMI 296 - PUNJAB AND HARYANA HIGH COURT ] has held that the principle of vicarious liability can not be extended indefinitely. In the present case also to force the owner of the conveyance to pay the tax, penalty and fine on the goods would mean that the owner of the conveyance is also foisted with the vicarious liability of any mis-declaration/fraud by the owner of the goods despite the proviso engrafted on to Sub Section 2 of Section 130 of the Act. The argument of the learned State counsel is rejected and it is directed that the conveyance be released forthwith. The goods obviously would be confiscated and disposed of by the respondents in accordance with law - Petition allowed. - HON'BLE MR. JUSTICE AJAY TEWARI AND HON' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fteen days may be reduced by the proper officer. 130. Confiscation of goods or conveyance and levy of penalty (1) [Where] any person- a) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard. (5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. (6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be accepted then the Section might well be rendered unconstitutional. In CWP No.18392 of 2021 titled as M/s Shiv Enterprises Vs. State of Punjab and others, decided on 04.02.2022 this Court held as under :- 21. Section 129 deals with contravention of the provisions of the Act by person transporting goods or storing goods while in transit. The provision provides for consequence of contravention of the provisions of the Act in form of detention or seizure of goods. In case, transport of goods in transit is found to be in contravention of the provisions of the Act, the same are liable to detention/seizure. On the other hand, Section 130 provides for 5 different situations in which the goods or conveyances are liable to confiscatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiny and assessment. It is the fundamental legal principle embedded in legal maxim LEX NON COGIT AD IMPOSSIBILIA -That the law does not compel a man to do that which he cannot possibly perform . Once a person cannot be compelled to do something not possible, definitely he cannot be penalized for not doing so. 6. By this judgment this Court has held that the principle of vicarious liability can not be extended indefinitely. In the present case also to force the owner of the conveyance to pay the tax, penalty and fine on the goods would mean that the owner of the conveyance is also foisted with the vicarious liability of any mis-declaration/fraud by the owner of the goods despite the proviso engrafted on to Sub Section 2 of Section 130 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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