Unjustified seizure of goods in transit was quashed, with immediate release ordered for unlawful and careless tax action.

Sales tax authorities could not sustain seizure of goods in transit where the goods were being carried for supply to a Government-owned corporation and the action was found reckless and careless. On the facts, the seizure was not a lawful exercise of power and had caused unwarranted harassment. The goods were therefore required to be released forthwith, with costs awarded and consequential damages indicated in case of non-compliance.

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Issues: Whether the seizure of the goods by the sales tax authorities was justified in law and whether the goods were liable to be released forthwith.

Analysis: The goods were being transported for supply to a Government-owned corporation. The authorities had acted in a reckless and careless manner and the seizure was found to have caused unwarranted harassment. On the facts, the seizure could not be sustained as a lawful exercise of power.

Conclusion: The seizure was held to be unjustified in law, and the petitioner was entitled to release of the goods forthwith with costs and consequential damages in case of non-compliance.

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