TaxTMI 
TaxTMI 
2016 (7) TMI 791
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....imachal Pradesh. In the process, such goods were stored in godowns at Ahmedabad when the State VAT authorities intervened and have passed an order on 17.05.2016 detaining such goods. Perusal of the order would suggest that the respondents called upon the petitioner and the godown owners to supply necessary details with respect to the goods who failed to do so. Under the circumstances, in exercise of powers under Section 70A(ii) of the VAT Act, the said order came to be passed. 2. Case of the petitioner is that the goods were in the process of transportation outside the State of Gujarat and that, therefore, no local tax was to be paid. The department, however, strongly refuted such averments and contended that the investigation reveals that....
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...., godown or any other such place, who stores goods for hire or reward, contravenes any of the provisions of sub-section (1) or sub-section (2) in a manner likely to lead to evasion of any tax payable under this Act, the Commissioner may, without prejudice to any other action which may be taken against such owner or lessee under any other provision of this Act direct, after giving an opportunity of being heard, that such owner or lessee shall pay by way of penalty not exceeding the amount of tax leviable on the goods in respect of which default is committed under sub-section (1) or (2)." 4. Likewise, Section 70A of the VAT Act pertains to furnishing of information by others. Sub section (1) thereof provides that the Commissioner may, for th....
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....inspection. Under sub-section (5) of Section 70A, where the person fails to act as required under sub section (1), the Commissioner may, without prejudice to any other action which is liable to be taken against such person under any other provision of the Act, after giving an opportunity of being heard, impose a penalty of a sum not exceeding Rs. 25000/-. Under sub section (6) of Section 70A, the Commissioner may release the goods or documents if the person concerned pays by way of penalty such sum not exceeding one and a half times the amount of tax leviable on such goods as he may direct. 7. Upon our query, learned Government Pleader had submitted before us that ultimately, if it is found that the goods were meant for sale within the Sta....
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.... is in possession of stolen property. Lastly, the department's anxiety can be taken care of by directing the petitioner to indemnify the department against any claim. 9. The Government Pleader also argued that such sales without payment of local tax might have taken place in the past also. If the department has an angle of seizure of goods for protecting the interest of Revenue, no such formal order has been passed. In absence of any such order, we cannot permit the department to continue to hold custody of the goods on mere apprehensions. Detention of goods for protecting interest of Revenue is a strong measure and can be permitted only on a formal order being passed so that the legality thereof can be examined when questioned. 10. U....