Tax evasion must be shown before seizure of goods under VAT law; unreasoned findings could not sustain the order.

For seizure of goods under section 50 of the U.P. Value Added Tax Act, 2008, an attempt to evade tax must be shown, and the authorities must first examine whether the goods brought into the State were taxable. The seizure was challenged because the accompanying Form XXXVIII had been crossed out and could not be reused, yet no reasoned finding explained how that circumstance indicated evasion. As the Tribunal failed to consider these material aspects before affirming the seizure, the seizure order and the Tribunal's order could not stand as they were. The matter was remanded for reconsideration, with interim release of the goods on furnishing security.

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Issues: Whether seizure of goods and the consequential order upholding seizure could stand without examining whether the goods were taxable and whether there was any material showing an attempt to evade tax.

Analysis: For seizure under section 50 of the U.P. Value Added Tax Act, 2008, an attempt to evade tax is a necessary condition. The authorities were required to first examine whether the goods brought into the State were taxable. The record also showed a specific grievance that the accompanying form XXXVIII had been crossed out and could not be reused, yet no reasons were assigned on how reuse of the form could lead to evasion. The Tribunal did not consider these material aspects before affirming the seizure.

Conclusion: The seizure order and the Tribunal's order could not be sustained as they stood. The matter was remanded for reconsideration on the relevant issues, with interim release of the goods on furnishing security.

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