Transit detention and sale cannot justify retaining surplus proceeds after tax dues are fully adjusted.

Goods detained in transit for recovery of tax dues may be sold, but the statute does not permit confiscation or continued retention beyond satisfaction of the liability. Once the tax dues are recovered from the sale proceeds, any surplus cannot be retained by the State and must be returned to the person entitled to it. On the facts, the appellate authority had already set aside the attachment and recovery notice, and relief was confined to payment of any balance remaining after adjustment of the tax liability.

---

---

Issues: Whether goods detained during transit could continue to be held for recovery of the consignee's tax dues, and whether any surplus amount remaining after sale of the goods and adjustment of the tax liability had to be paid to the petitioner.

Analysis: The detention was initially linked to penalty proceedings for transit without proper documents, and the appellate authority had already set aside the attachment and the recovery notice. The Court noted that the Act provided for detention and sale for recovery of tax liability, but did not provide for confiscation of goods. Once the object of detention is satisfied by recovery of the dues from sale proceeds, the State cannot retain any surplus. On the facts, the continued stand against release was not accepted, though the Court confined relief to the surplus, if any, after meeting the tax liability.

Conclusion: The petitioner was held entitled to receive any surplus remaining after sale of the detained goods and adjustment of the tax liability.

---