Confiscation proceedings and transit detention procedure led to ad-interim release of truck and goods pending hearing

Confiscation proceedings were challenged on the ground that the statutory sequence required prior notice and adjudication under the detention and transit levy provisions before resorting to confiscation. The petitioner also relied on prior deposit of tax and penalty and sought interim protection. The HC considered these factors sufficient to grant ad-interim relief and directed release of the truck and goods, subject to an undertaking, pending further hearing.

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Issues: Whether the respondents could proceed under confiscation provisions without first following the procedure prescribed for detention and levy in transit, and whether interim release of the vehicle and goods was warranted.

Analysis: The petitioner's case was that the statutory sequence required issuance of notice and adjudication under the detention provision before resort to confiscation. It was also pointed out that tax and penalty had already been deposited. On that basis, the Court considered it appropriate to grant immediate interim protection pending further proceedings.

Conclusion: Ad-interim release of the truck and the goods was directed, subject to an undertaking by the petitioner. Notice was issued to the respondents for further hearing.

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