Interim release of seized perishable goods permitted after penalty deposit, with assessment directed to proceed in accordance with law.

Where the penalty under Section 55(6)(ea) of the Madhya Pradesh VAT Act, 2002 had been deposited and the seized goods were perishable, the High Court found a prima facie basis for interim release and held that continued detention was unwarranted at that stage; the goods were directed to be released within one week. As assessment proceedings were still pending, the Assessing Authority was directed to proceed in accordance with law, supply all documents to the petitioner, observe due procedure, and complete the assessment within three months.

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Issues: (i) Whether the seized goods were liable to be released after the petitioner had deposited the penalty under Section 55(6)(ea) of the Madhya Pradesh VAT Act, 2002. (ii) Whether the assessment proceedings were to be completed within a fixed time with delivery of documents to the petitioner and observance of due procedure.

Issue (i): Release of seized goods after payment of penalty under the VAT Act.

Analysis: The petitioner had deposited the entire penalty imposed under Section 55(6)(ea), and the goods seized were perishable in nature. On this basis, the Court found a prima facie case for interim relief and considered continued detention of the goods unwarranted at that stage.

Conclusion: The seized goods were directed to be released within one week.

Issue (ii): Direction for completion of assessment with supply of documents and observance of due procedure.

Analysis: Since the assessment proceedings were still pending, the Court directed the Assessing Authority to proceed in accordance with law, ensure delivery of all documents to the petitioner, and complete the assessment within the stipulated period.

Conclusion: The Assessing Authority was directed to complete the assessment within three months after supplying documents and following due procedure.

Final Conclusion: The petitioner obtained interim relief by securing release of the seized goods, and the assessment proceedings were directed to be concluded expeditiously in accordance with law.

Ratio Decidendi: Where penalty has been deposited and the petitioner shows a prima facie case, interim release of seized goods may be ordered while directing expeditious completion of assessment in accordance with law.

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