Detention order invalid for transit goods where notice, hearing, and statutory procedure under tax law were not properly followed.

A detention order under section 70A of the Gujarat Value Added Tax Act, 2003 was held unsustainable where the goods were shown in transit under Form 405, the notice was addressed only to the driver, and the statutory procedure for seeking information and granting a hearing was not followed. The authority's notice did not clearly invoke the information requirement contemplated by section 70A, the order proceeded on a different factual basis from the notice, and it incorrectly recorded service on the transporter. The record also showed blanks, inconsistency, and lack of application of mind. The order was quashed and set aside, and relief was granted to the petitioners.

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Issues: Whether the detention order passed under section 70A of the Gujarat Value Added Tax Act, 2003 was valid when the goods were shown to be in transit, the notice was issued only to the driver, and the statutory requirements for calling for information and granting an opportunity of hearing were not complied with.

Analysis: The goods were covered by a transit pass in Form 405 and the record did not show that the driver was required to carry Form 403 for a vehicle merely passing through the State. The notice issued by the authority called only for an explanation regarding an alleged offloading at Changodar and did not clearly seek the information contemplated by section 70A. The detention order proceeded on a different footing, recorded that notice had been served on the transporter when in fact it had not, and was passed without a proper opportunity of hearing to the petitioners. The order also reflected inconsistency, blanks, and lack of application of mind. The purported reliance on section 67(6) was not supported by compliance with the statutory procedure.

Conclusion: The detention order was unsustainable and was quashed and set aside. The petitioners were entitled to relief.

Ratio Decidendi: A detention order under section 70A of the Gujarat Value Added Tax Act, 2003 cannot stand unless the statutory basis for seeking information is , the person concerned is afforded a real opportunity of hearing, and the order is made on relevant grounds with proper application of mind.

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