https://www.taxtmi.com/caselaws?id=163204 Seizure and penalty for alleged undervaluation were held unsustainable where the consignments were supported by way bills and invoices, but the authority relied on an undisclosed market verification report and gave no material basis for rejecting the dealer's explanation. An unexplained difference between declared import price and alleged local sale price, without accounting for transport and incidental costs, was insufficient to establish undervaluation. The decision-making process was characterised as arbitrary and a colourable exercise of power. The authority was also required to supply the material relied upon and afford a meaningful opportunity to contest it, because seizure does not automatically justify penalty and penalty proceedings are independent. en-us Wed, 09 Jan 2008 00:00:00 +0530 Tue, 25 Mar 2014 15:18:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163204 Seizure and penalty for alleged undervaluation were held unsustainable where the consignments were supported by way bills and invoices, but the authority relied on an undisclosed market verification report and gave no material basis for rejecting the dealer's explanation. An unexplained difference between declared import price and alleged local sale price, without accounting for transport and incidental costs, was insufficient to establish undervaluation. The decision-making process was characterised as arbitrary and a colourable exercise of power. The authority was also required to supply the material relied upon and afford a meaningful opportunity to contest it, because seizure does not automatically justify penalty and penalty proceedings are independent. Case-Laws VAT and Sales Tax Wed, 09 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163204