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2013 (12) TMI 214 - HC - VAT and Sales TaxPenalty u/s 57 (15) Madhya Pradesh Value Added Tax Act, 2002 – goods detained being not supported by the documents - Held that:- After the order imposing the penalty against the petitioner was passed - The petitioner had opted to pay a lump sum amount as per Section 57 (17) of the Act and paid the penalty amount - once the petitioner had paid the penalty imposed upon it by the Check Post Officer, it was incumbent upon the Check Post Officer to have exercised its power under Section 57 (11) of the Act to release the goods seized by it in favour of the transporter. Dues of tax against the seller - Before expiry of period of Notice of Demand issued to seller, as required under Section 27 of the Act read with Rule 41 of the MP VAT Rules, 2006 the goods were already sold by M/s. Shri Hari Enterprises to M/s. Mahajan Traders and its ownership no more remained with M/s. Shri Hari Enterprises - the seller having already received the price of the goods and having handed over the goods to the petitioner / transporter for being delivered to the buyer, the goods could not have been detained by the Check Post Officer for realization of the tax assessed by it against the seller - The amount of tax against M/s. Shri Hari Enterprises was crystalized and became payable after the sale of the goods was already complete - The action of the revenue in not releasing the goods in favour of the petitioner / transporter is violative of Section 57 (11) of the Act – Revenue is directed to release the tankers with goods – Decided in favour of Petitioner.
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