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2015 (4) TMI 169 - HC - VAT and Sales TaxSeizure of the goods - Imposition of penalty - goods were not accompanied by a Form No.402 - Opportunity of hearing not granted - Violation of principle of natural justice - Held that:- It is apparent that the goods of the petitioner have been detained along with the truck by the fifth respondent. Thereafter, the fifth respondent, by the impugned order, has assessed the tax payable on the goods in question at ₹ 1,65,240/- and has imposed penalty at 150% of the said amount being ₹ 2,47,860/-. In this regard, a perusal of the provisions of sub-section (5) of section 68 of the VAT Act reveals that the officer-in-charge of the check-post or barrier may, after giving the owner, driver or person-in-charge of goods, a reasonable opportunity of being heard and after holding such further inquiry, as he deems fit, impose on him penalty, in addition to tax payable under the Act, not exceeding one and one-half times of the tax for possession of goods so seized. Reverting to the facts of the present case, it is not in dispute that the value of the goods in question is ₹ 3,60,000/- . If the goods are sought to be sent outside the State of Gujarat, the tax payable would be at 2%, which would come to ₹ 7,200/-. However, even if the goods are meant for sale within the State of Gujarat, the highest amount of tax that could be leviable would be at the rate of 15%, which would come to ₹ 54,000/-. From the facts which have come on record, it is apparent that the petitioner has not been afforded an opportunity of hearing by the respondents. Clause (a) of subsection (5) of section 68 of the VAT Act clearly contemplates affording reasonable opportunity of being heard to the owner, driver or person-in-charge of the goods. Under the circumstances, the impugned order clearly suffers from the vice of being in breach of the principles of natural justice and as such, cannot be sustained on this ground alone. - Decided in favour of assessee.
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