Gujarat High Court
Mahavir Trans Services vs State Of Gujarat & 4 on 21 March, 2017
Author: A.Y. Kogje
Bench: Anant S. Dave, A.Y. Kogje
C/SCA/5029/2017 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL CIVIL APPLICATION NO. 5029 of 2017
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MAHAVIR TRANS SERVICES....Petitioner(s)
Versus
STATE OF GUJARAT & 4....Respondent(s)
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Appearance:
BHARGAV KARIA & ASSO, ADVOCATE for the Petitioner(s) No. 1
MS MAITHILI MEHTA, AGP for the Respondent(s) No. 1
NOTICE SERVED BY DS for the Respondent(s) No. 1 - 5
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CORAM: HONOURABLE MR.JUSTICE ANANT S. DAVE
and
HONOURABLE MR.JUSTICE A.Y. KOGJE
Date : 21/03/2017
ORAL ORDER (PER : HONOURABLE MR.JUSTICE A.Y. KOGJE)
1. The present petition is filed challenging notice and order of seizure dated 25.01.2017, 28.01.2017 and 21.02.2017 issued by respondent No.2 in connection with action taken by respondent Nos.3 and 4. The petitioner has also prayed for release of the goods seized as the same were perishable in nature.
2. The facts in brief are:-
2.1 The petitioner is engaged in the business of transport. In course of his business, he received certain goods from his client, meant for transporting the same out of State of Gujarat. While the vehicle-truck of the petitioner was on its way to the destination, it was intercepted near Narol Char Rasta, Ahmedabad on Page 1 of 4 HC-NIC Page 1 of 4 Created On Mon Aug 14 06:49:51 IST 2017 C/SCA/5029/2017 ORDER 25.01.20178.
2.2 Inability of the driver of the truck to furnish necessary details about the goods, led to the action by the respondent Department, considering as if the goods are being transported without payment of necessary taxes under the provisions of the VAT Act.
3. Learned Advocate for the petitioner submitted that the petitioner has claimed to receive the goods which are under seizure, for which the present petition is filed. He submitted that the Department is now to dispose of the goods by way of auction under the provisions of VAT Act.
4. Upon issuance of notice, learned AGP has furnished a statement, wherein goods which were under seizure were evaluated and the rate of tax under VAT and additional VAT and penalty was calculated. As per the statement, the petitioner, who claims to release the goods, is held to be liable for a total amount of Rs.2.09.198/-, which includes tax under the VAT + additional applicable VAT and 150% penalty. The said unsigned statement is taken on record.
5. Learned Advocate for the petitioner initially sought time for instructions to ascertain whether petitioner is ready and willing to pay the aforementioned amount towards release of goods. After receiving necessary instructions, today, learned Advocate for the Page 2 of 4 HC-NIC Page 2 of 4 Created On Mon Aug 14 06:49:51 IST 2017 C/SCA/5029/2017 ORDER petitioner stated that without prejudice to the rights and contentions, the petitioner is ready and willing to pay the amount of tax, additional tax and penalty as per the statement. He submitted that since he has expressed his willingness to pay the amount, the goods thus seized mentioned in the statement produced hereinabove may now not be disposed under auction as contemplated under the notice dated 21.02.2017.
6. In view of the aforesaid development, it is ordered that the auction in connection with the subject matter goods may not be proceeded with and such goods be released in favour of the petitioner upon payment of VAT, added VAT and penalty as per the statement hereinabove.
The aforesaid exercise be conducted within period of one week from receipt of writ of this Court as the goods are reported to be perishable.
7. The Court has not entered into the merits of the case and hence, both parties are at liberty to pursue the remedy available to them respectively under the law.
8. With the aforesaid direction, petition is disposed of. Notice is discharged. No order as to costs.
(ANANT S.DAVE, J.) Page 3 of 4 HC-NIC Page 3 of 4 Created On Mon Aug 14 06:49:51 IST 2017 C/SCA/5029/2017 ORDER (A.Y. KOGJE, J.) SHITOLE Page 4 of 4 HC-NIC Page 4 of 4 Created On Mon Aug 14 06:49:51 IST 2017