Detention of goods for Form 403 default led to appellate remedy, with interim release allowed against bank guarantee.

Detention of a truck and goods for non-filing of Form 403, together with a penalty order under the Gujarat Value Added Tax Act, was treated as a matter fit for the statutory appellate remedy under Section 68(5), rather than continuing in writ jurisdiction. As the tax on the goods had already been paid, the court directed interim release of the truck and goods on the petitioners furnishing a bank guarantee for the penalty amount, without affecting the parties' rights in appeal. The writ petitions were disposed of with liberty to pursue the statutory appeal.

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Issues: (i) whether the petitioners, whose truck and goods were detained for non-filing of Form 403 and against whom an order of penalty had been passed, should be relegated to the statutory appellate remedy under Section 68(5) of the Gujarat Value Added Tax Act, 2003; (ii) whether the truck and goods should be released pending appeal on furnishing security.

Issue (i): whether the petitioners, whose truck and goods were detained for non-filing of Form 403 and against whom an order of penalty had been passed, should be relegated to the statutory appellate remedy under Section 68(5) of the Gujarat Value Added Tax Act, 2003

Analysis: The petitions were filed under Article 226 of the Constitution of India seeking release of the detained truck and goods. The order of penalty under Section 68(5) of the Gujarat Value Added Tax Act, 2003 was treated as an appealable order, and the tax payable on the goods had already been deposited. In these circumstances, the proper course was to invoke the appellate remedy against the order passed under Section 68(5).

Conclusion: The petitioners were relegated to the appellate remedy under Section 68(5) of the Gujarat Value Added Tax Act, 2003.

Issue (ii): whether the truck and goods should be released pending appeal on furnishing security

Analysis: Since the entire tax amount due on the detained goods had already been paid, the Court directed release of the truck and goods as an interim arrangement, subject to the petitioners furnishing a bank guarantee for the amount of penalty.

Conclusion: The truck and goods were directed to be released on furnishing a bank guarantee of Rs. 1,04,000/-.

Final Conclusion: The writ petitions were disposed of by directing the parties to pursue the statutory appeal and by granting interim release of the detained truck and goods against security, without prejudice to the rights of the parties in appeal.

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