https://www.taxtmi.com/caselaws?id=148421 Section 42(3) of the Madras General Sales Tax Act, 1959, which allowed seizure and confiscation of goods in transit with an option to pay penalty, was held unconstitutional because the power was not ancillary or incidental to the sales tax levy. The provision was treated as substantially in pari materia with an earlier invalidated confiscation provision and as repugnant to the scheme of the Act, since it could operate before the taxable event occurred and thereby support recovery before tax liability arose. The fact that the goods were intercepted in transit and suspected of evasion did not cure the defect; constitutional validity depended on the language and effect of the provision itself. en-us Mon, 23 Sep 1968 00:00:00 +0530 Sat, 27 Apr 2013 09:31:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=148421 Section 42(3) of the Madras General Sales Tax Act, 1959, which allowed seizure and confiscation of goods in transit with an option to pay penalty, was held unconstitutional because the power was not ancillary or incidental to the sales tax levy. The provision was treated as substantially in pari materia with an earlier invalidated confiscation provision and as repugnant to the scheme of the Act, since it could operate before the taxable event occurred and thereby support recovery before tax liability arose. The fact that the goods were intercepted in transit and suspected of evasion did not cure the defect; constitutional validity depended on the language and effect of the provision itself. Case-Laws VAT and Sales Tax Mon, 23 Sep 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=148421