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2016 (7) TMI 791 - HC - VAT and Sales TaxDetention of consignment of betel nuts - proof of ownership of goods - Case of the petitioner is that the goods were in the process of transportation outside the State of Gujarat and that, therefore, no local tax was to be paid. The department, however, strongly refuted such averments and contended that the investigation reveals that the so-called sellers of Karnataka have denied having sold such goods to the petitioner. Inquiries with the dealers at Himachal Pradesh which were supposed to have received the goods also falsifies the claim of the petitioner. Held that:- The contention that the petitioner cannot reclaim the goods as the petitioner's ownership is not established, need not detain us. Firstly, the goods were detained from the petitioner's custody. Secondly, there is no counter claim by any other agency staking claim of ownership over the goods. Thirdly, there is no police complaint alleging that the petitioner is in possession of stolen property. Lastly, the department's anxiety can be taken care of by directing the petitioner to indemnify the department against any claim. The Government Pleader also argued that such sales without payment of local tax might have taken place in the past also. If the department has an angle of seizure of goods for protecting the interest of Revenue, no such formal order has been passed. In absence of any such order, we cannot permit the department to continue to hold custody of the goods on mere apprehensions. Detention of goods for protecting interest of Revenue is a strong measure and can be permitted only on a formal order being passed so that the legality thereof can be examined when questioned. Goods to be released subject to conditions.
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