2012 (11) TMI 1050 - HC - VAT and Sales Tax

Court deems seizure of PVC granules unjustified based on mere apprehension, emphasizes proper documentation. Non-deposit of Form 16 not fatal.

The High Court ruled that the seizure of PVC granules from a truck, based on the apprehended intention to sell them at a different location despite all ... - The truck carrying PVC granules was seized despite the driver having all prescribed documents; only Form 16 had not been deposited at the nearest Department office. Seizure was premised on an apprehension that the goods would be diverted for sale in Udham Singh Nagar rather than delivered to Roorkee. The Tribunal relied on section 43 of the Act but upheld seizure based on the perceived intention to sell. Court found the goods 'were duly accounted for' and held that, where goods are accompanied by Form 16 and other relevant documents, 'merely because form 16 has not been deposited, no opinion can be expressed that the goods are not traced to any bona fide dealer or it is doubtful if such goods are properly accounted for.' The seizure was therefore illegal; revision is allowed, the seizure set aside, and the goods ordered released without any security.