Petitioners' Objections Dismissed, Committee to Conclude Proceedings & Release Report

The court dismissed the petitioners' objections to the committee's constitution and directed the committee to conclude its proceedings and release its report. The DT&T was instructed to complete the verification exercise expeditiously and submit a compliance report by 31st October 2019. The writ petition was disposed of with no costs.

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Issues Involved:
1. Legality of the seizure of goods by the Commissioner of Trade and Taxes (CTT) and Deputy Commissioner of Police.
2. Petitioners' failure to produce ownership documents.
3. Constitution and jurisdiction of the Committee by CTT.
4. Compliance with the Delhi Value Added Tax Act (DVAT Act) provisions.
5. Petitioners' objections to the Committee's constitution.
6. Release of seized goods and compensation for stolen goods.

Detailed Analysis:

1. Legality of the Seizure of Goods:
The petitioners sought the release of goods seized by the Commissioner of Trade and Taxes (CTT) and the Deputy Commissioner of Police on 1st March 2014. The goods, comprising gold, silver jewelry, and cash worth nearly Rs. 4 crores, were seized from two thelas (goods carts) at the Old Delhi Railway Station. The petitioners claimed that the seizure was not conducted in accordance with the law and the procedure envisaged under the Delhi Value Added Tax Act (DVAT Act).

2. Petitioners' Failure to Produce Ownership Documents:
In the previous litigation (W.P.(C) No.3799/2014), the court concluded that the petitioners failed to produce documents proving ownership of the seized goods. There was no averment that at the time of seizure, the petitioners had complete documents to show ownership. The court noted that the method of transporting jewelry and cash by road and rail had been regularly deployed, flouting the DVAT Act provisions.

3. Constitution and Jurisdiction of the Committee by CTT:
The court directed the CTT to examine the petitioners' claims for the release of goods and communicate a decision within eight weeks upon the petitioners producing complete documentation. The CTT constituted a committee to verify the claims, but the petitioners objected to its constitution and refused to participate in the hearings, leading to a stalemate.

4. Compliance with the DVAT Act Provisions:
The court observed that the DT&T lacked the infrastructure to handle the detention and custody of goods valued at around Rs. 4 crores. Some of the seized goods were stolen, leading to the registration of a criminal case. The court emphasized the need for DT&T to unearth the complete facts regarding the transportation of valuable goods and cash from one state to another and to coordinate with the Reserve Bank of India (RBI) to implement regulatory measures.

5. Petitioners' Objections to the Committee's Constitution:
The petitioners filed a petition questioning the constitution of the committee by the CTT, arguing that it was without jurisdiction and authority of law. The court clarified that the committee was constituted to verify the ownership claims and not to make any tax assessments. The petitioners' reference to Section 34 (2) of the DVAT Act was deemed misconceived.

6. Release of Seized Goods and Compensation for Stolen Goods:
The court held that the goods could not be released to the petitioners unless they proved ownership. The DT&T was required to verify the documents submitted by the petitioners and determine their genuineness. The court expressed displeasure at the DT&T's delay in concluding the proceedings and directed the committee to release its report by 31st July 2019. The petitioners were given the option to seek appropriate remedies if aggrieved by the report.

Conclusion:
The court dismissed the petitioners' objections to the committee's constitution and directed the committee to conclude its proceedings and release its report. The DT&T was instructed to complete the verification exercise expeditiously and submit a compliance report by 31st October 2019. The writ petition was disposed of with no costs.

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