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2011 (11) TMI 615 - HC - VAT and Sales Tax
Issues involved:
The issues involved in the judgment include imposition of tax and penalty without proper notice or hearing, alleged transportation of goods without proper documents, and violation of principles of natural justice. Imposition of Tax and Penalty without Notice or Hearing: The petitioner had imported mobile phones and components, cleared them through customs, and loaded them onto a goods carrier. However, the truck was stopped by officers of the Department of Trade and Taxes for verification of bills. Subsequently, an assessment/penalty order was passed imposing a total penalty of Rs. 3,88,824 without giving notice to the petitioner. The order ignored a letter submitted by the petitioner and only mentioned the driver of the truck, Inder Pal. The order lacked proper grounds for imposing the penalty, as it only mentioned "verification of bills/GRs." The court found that the order was passed hastily and without giving the petitioner an opportunity to be heard, leading to a violation of natural justice. Alleged Transportation of Goods without Proper Documents: In response to the petitioner's claim that they had submitted relevant papers/documents with regard to import and payment of customs duty, the respondents alleged that the goods were transported without a goods receipt or GR. However, the statements and orders made by the authorities did not mention the absence of a GR. The respondents later claimed that the GR was not available with the driver, but this assertion was not reflected in the initial documents. The court observed discrepancies in the respondents' stand and concluded that the assessment/penalty order was based on insufficient grounds. Violation of Principles of Natural Justice: The court held that the authorities had shown haste and arbitrariness in passing the order without proper consideration or giving the petitioner an opportunity to present their case. The judgment emphasized the importance of adhering to principles of natural justice and criticized the lack of application of mind by the concerned authorities. Consequently, the court decided to quash the order dated November 4, 2011 and ordered the immediate release of the detained goods to the petitioner. While disposing of the writ petition, the court allowed the respondent authorities to pass a fresh assessment/penalty order after hearing the petitioner, in accordance with the law.
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