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2016 (5) TMI 435 - HC - VAT and Sales TaxValidity of detention order - passed under Section 70A(2) of the Gujarat Value Added Tax Act, 2003 - Violation of principles of natural justice - Goods were in transit - No notice issued - Held that:- there is nothing therein to indicate as to what is the nature of information in respect of the goods that was sought for by the second respondent, nor is it the case of the respondent that he has sought permission to inspect the goods. The only explanation called for from the driver of the vehicle was to explain his statement that the goods were required to be offloaded at Changodar. While the notice was issued calling upon the driver to explain his statement as to why the goods were required to be offloaded at Changodar, the impugned detention order is totally silent in that regard and proceeds on some other footing that the transporter could not produce the required information called for under section 70A of the GVAT Act. In the opinion of this court, the impugned detention order purportedly made under section 70A of the GVAT Act, leaves a lot to be decided and speaks a volume about the conduct of the officers under the GVAT Act or their lack of knowledge of the statutory provisions. It is not the case of the second respondent that any procedure as envisaged under sub-section (7) of section 67 of the GVAT Act has been followed in the present case. Thus, the vehicle does not appear to have been stopped under section 67(6) of the GVAT Act. From the impugned notice, it is difficult to cull out as to what is the nature of the information sought for by the second respondent. All that is stated by the second respondent in the notice is calling upon the driver to explain his statement that the goods were required to be off loaded at Changodar. Evidently therefore, the requirements for invocation of the powers under section 70A of the GVAT Act have not been satisfied in the present case. Therefore, the impugned detention order passed under section 70A of the GVAT Act suffers from the breach of principles of natural justice as well as lack of application of mind and therefore, stands vitiated. The impugned detention order is quashed and set aside. Since the truck in question has been released during the pendency of the petition, the respondents are directed to forthwith release the goods seized from the truck as well as other documents which have been seized by them. Since in the meanwhile, the transit pass issued in Form 405 has expired and the vehicle in question has also been released, the goods would be required to be carried in another vehicle and therefore, the second respondent is directed to do the needful for issuance of a fresh transit pass in Form 405 for transit of the goods. - Decided in favour of petitioner
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