TaxTMI 
TaxTMI 
2020 (4) TMI 59
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction, directing the respondents to forthwith release truck No.RJ-14-GJ-2683 along with goods which is lying at Ahmedabad since 6.7.2019 on payment of tax and penalty. (C) Pending admission, hearing and final disposal of the above Special Civil Application do direct the respondent nos. 1 & 2 to forthwith release truck no.RJ-14-GJ2683 alongwith goods which is lying at Ahmedabad since 6.7.2019 on recovery of tax and penalty. (D) The Hon'ble Court may kindly be pleased to grant any other appropriate relief as the nature circumstances of the case may require. (E) To award the cost of this petition." 2. We take note of the order passed by a coordinate Bench of this Court, dated 23rd October, 2019, which reads th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntion of the provisions of the Act or the Rules for the purpose of detention and seizure of the goods and conveyances in transit. The contravention could be trivial or it may be quite serious sufficient enough to justify the detention and seizure. This litigation is nothing but an outburst on the part of the dealers that practically in all cases of detention and seizure of goods and conveyance, the authorities would straightway invoke Section 130 of the Act and thereby would straightway issue notice calling upon the owner of the goods or the owner of the conveyance to show-cause as to why the goods or the conveyance, as the case may be, should not be confiscated. Once such a notice under Section 130 of the Act is issued right at the incepti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the amount, referred to in sub-section (1) of the proceedings in respect of the notice, specified in sub-section (3) are deemed to be concluded, and in the last, clause (6) provides that if the tax and penalty is not paid within 14 days of detention or seizure, then further proceedings would be initiated in accordance with the provisions of Section 130. 101. We are of the view that at the time of detention and seizure of goods or conveyance, the first thing the authorities need to look into closely is the nature of the contravention of the provisions of the Act or the Rules. The second step in the process for the authorities to examine closely is whether such contravention of the provisions of the Act or the Rules was with....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uthenticity of the delivery challan is also not doubted. In such a situation, it would be too much for the authorities to straightway jump to the conclusion that the case is one of confiscation, I.e, the case is of intent to evade payment of tax. 103. We take notice of the fact that practically in all cases, after the detention and seizure of the goods and the conveyance, straightway notice is issued under Section 130, and in the said notice, one would find a parrot like chantation " as the goods were being transported without any valid documents, it is presumed that the goods were being transported for the purposes of evading the tax". We have also come across notices of confiscation, wherein it has been stated that the the driver....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aw, or we should not be understood to have taken the view that, in any circumstances, the authorities concerned cannot invoke Section 130 of the Act at the threshold, I.e., at the stage of detention and seizure. What we are trying to convey is that for the purpose of invoking Section 130 of the Act at the very threshold, the authorities need to make out a very strong case. Merely on suspicion, the authorities may not be justified in invoking Section 130 of the Act straightway. If the authorities are of the view that the case is one of invoking Section 130 of the Act at the very threshold, then they need to record their reasons for such belief in writing, and such reasons recorded in writing should, thereafter, be looked into by the superior....