Detention of transit vehicle is only incidental to seizure of goods and ends once goods are secured.

Section 68(4)(b) of the Gujarat Value Added Tax Act, 2003 permits detention of a transit vehicle only as an ancillary measure to enable seizure of goods when the declaration is unsatisfactory or compliance is lacking. The authority may seize the goods and must issue the statutory receipt, but it cannot retain the truck beyond the time necessary for that seizure. Once the goods are unloaded, seized and properly secured, the vehicle must be released. The Gujarat High Court therefore treated continued detention of the truck as unjustified after seizure of the goods.

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Issues: Whether, on a proper construction of section 68(4)(b) of the Gujarat Value Added Tax Act, 2003, the authorities could detain the vehicle only for the purpose of seizing the goods and were bound to release the truck after seizure of the goods.

Analysis: The provision empowers the authority, upon an unsatisfactory declaration or non-compliance, to seize the goods and detain the vehicle for the limited purpose of facilitating such seizure. The detention of the vehicle is not an independent power to keep the truck indefinitely, and the statutory scheme contemplates seizure of the goods with a receipt to the person from whose possession they are taken. Once the goods are seized and properly secured, the vehicle is required to be released.

Conclusion: The authorities had power to detain the vehicle only as an incident of seizing the goods, and the truck was required to be released after unloading and seizure of the goods. The direction for release of the vehicle was therefore justified.

Ratio Decidendi: Under section 68(4)(b) of the Gujarat Value Added Tax Act, 2003, detention of a vehicle in transit is only an ancillary power to effect seizure of the goods and cannot be used to retain the vehicle beyond the time necessary for that purpose.

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