Over dimensional cargo classification cannot rest on transit speed alone; seizure and penalty fail without evidence of tax evasion intent.

Seizure and penalty for alleged over dimensional cargo were held unsustainable where the transportation documents matched the goods and no finding of intent to evade tax was recorded. The tax circular treated vehicle height as the relevant test for over dimensional cargo and did not use transit speed as a basis for classification. Because the orders rested only on an assumption that the goods moved quickly, without substantive material showing wilful evasion or mens rea, the High Court quashed the seizure, penalty and appellate orders and granted consequential relief, including return of the security and penalty amount.

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Issues: Whether the seizure order, penalty order and appellate orders could be sustained where the goods were treated as over dimensional cargo, the transportation documents were in order, and no finding of intention to evade tax was recorded.

Analysis: The circular issued by the tax authorities treated vehicle height as the relevant criterion for classification of over dimensional cargo and did not make transit speed a basis for such classification. The orders were founded only on the assumption that the goods had travelled quickly, while the invoice, e-way bill and bilty matched the goods. No substantive material was shown to establish wilful evasion or mens rea, and the penalty rested on conjectures rather than evidence.

Conclusion: The impugned orders were unsustainable and were quashed. The petitioner was entitled to consequential relief, including return of the security and penalty amount.

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