Wrongly Deposited Tax Penalty Refunded, Confiscated Goods Released After Correct Tax Payment by Petitioners

HC ruled that wrongly deposited penalty by petitioner No. 1 must be refunded within 10 days. Once petitioner No. 2 deposits correct tax and penalty, confiscated goods and vehicle will be released within a week, addressing financial hardship and procedural complications in tax enforcement.

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Issues involved:
The issues involved in the judgment are release of confiscated goods and conveyance, payment of demanded tax and penalty, ownership of goods and vehicle, refund of wrongly deposited penalty, financial hardship of petitioners.

Release of confiscated goods and conveyance:
The petitioner filed a petition seeking directions for the release of confiscated goods and conveyance after paying the demanded tax and penalty. The vehicle in question was registered in the name of petitioner No. 2, but the penalty was deposited by petitioner No. 1. The State submitted that the penalty was wrongly deposited and cannot be adjusted, and petitioner No. 1 can seek a refund and utilize the amount for future tax liabilities. The conveyance will be released once the penalty and fine are rightly deposited in the name of petitioner No. 2.

Refund of wrongly deposited penalty:
The petitioners claimed financial hardship and inability to deposit the amount twice. They requested directions to refund the amount so that it can be deposited by the correct person for the release of goods and the vehicle. The court disposed of the writ petition by directing the jurisdictional officer to refund the wrongly deposited amount by petitioner No. 1 within 10 days. Subsequently, if the correct person, petitioner No. 2, deposits the amount, the goods and the vehicle should be released within a week.

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