Seizure based on missing transit form was unsustainable once the original form was produced before the seizure order.

Goods detained for absence of Form-38 at interception could not validly be seized or secured once the assessee produced the original form in reply to the show cause notice before the seizure order was passed. Because the genuineness of the form was not disputed, the initial discrepancy stood cured and the authority was required to consider the document and its effect before proceeding. The seizure of goods and demand of security were therefore held unsustainable and set aside in favour of the assessee.

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Issues: Whether the seizure of goods and demand of security were sustainable when the import declaration form was not found at the time of checking but was produced before the seizure order in response to the show cause notice.

Analysis: The goods were detained only because Form-38 was not accompanying the vehicle at the time of checking. A show cause notice under Section 50(4) of the U.P. Value Added Tax Act, 2008 was issued, and the assessee produced the original Form-38 with its reply before the seizure order was passed. Since the genuineness of the form was not disputed, the discrepancy noticed at interception stood removed before the decision on seizure. The authority was required to consider the document and its effect before ordering seizure and demanding security.

Conclusion: The seizure of goods and the demand of security were unsustainable and were set aside in favour of the assessee.

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