Detention and confiscation procedure under transit tax law: ad interim release granted after tax and penalty deposit.

The Gujarat High Court noted that the statutory scheme for goods in transit requires resort first to detention and penalty, with confiscation consequences arising only after non-compliance with that procedure. As tax and penalty had already been deposited, the court granted ad interim release of the detained truck and goods, treating immediate interim protection as appropriate pending the returnable date. The relief was made conditional on an undertaking to cooperate if the petition ultimately failed.

---

---

Issues: Whether ad interim release of the detained truck and goods should be granted when tax and penalty had already been deposited and proceedings were sought to be initiated under the confiscation provision without following the detention procedure.

Analysis: The statutory scheme contemplates first resort to the detention and penalty mechanism for goods in transit and only thereafter invocation of confiscation consequences upon non-compliance. Since the petitioner had already deposited tax and penalty, the court found it to grant immediate interim protection pending the returnable date. The relief was conditioned on an undertaking to cooperate in the event the petition ultimately failed.

Conclusion: Ad interim release of the truck and the goods was granted in favour of the petitioner.

---