Form XXI exemption for small iron and steel consignments bars seizure where each load stays within the prescribed weight limit.

The circular dated 7 January 2011 was interpreted to exempt iron and steel consignments not exceeding nine metric tonnes from carrying Form XXI. Where the goods were transported under separate tax invoices and different vehicles, each within the weight limit, no illegality or evasion could be inferred merely from the split movement of consignments. On that basis, seizure for non-production of Form XXI was not justified, and release of the goods was directed on furnishing security other than cash or bank guarantee for the tax leviable on the consignment.

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Issues: Whether consignments of iron and steel not exceeding nine metric tonnes each were exempt from accompanying Form XXI under the circular dated 7 January 2011, and whether seizure on the ground of non-production of Form XXI was justified.

Analysis: The circular dated 7 January 2011 was construed to dispense with the requirement of Form XXI for consignments of iron and steel up to nine metric tonnes. The goods in question were transported under separate tax invoices and different vehicles, with each consignment falling within the exempted weight limit. It was held that the assessee was entitled to structure transport in a manner that attracted the exemption and that no illegality or evasion could be inferred merely because the consignments were moved separately. The Tribunal's contrary view was found to be legally unsustainable.

Conclusion: The seizure could not be sustained on the ground of absence of Form XXI, and the goods were directed to be released on furnishing security other than cash or bank guarantee for the tax leviable on the consignment.

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