HC directed dept. to release detained vehicle of transporter on payment of amount determined

Case Details: C. Ranganathan v. Commissioner of Commercial Tax - [2022] 139 taxmann.com 215 (Madras)

Judiciary and Counsel Details

• • C. Saravanan, J.
  • J. Ashish for the Petitioner.
  • Richardson Wilson, Addl. Govt. Pleader for the Respondent.

Facts of the Case

The petitioner was owning several vehicles and engaged in the business of transportation of goods. It allowed the vehicles for transport of goods by the consigner who had allegedly used the expired e-way bills to evade tax. These vehicles were seized along with the consignments of goods loaded by the consigner. It filed writ petition for release of its vehicles.

High Court Held

The Honorable High Court noted that if the goods were removed in the clandestine manner on the strength either expired e-way bills or forged/fabricated invoice, the petitioner was not expected to transport the goods. However, no useful purpose would be served by allowing the vehicles to be detained any longer as the vehicles would lose their intrinsic value. Moreover, there was no evidence to suggest that the petitioner conspired with the consignor to facilitate evasion of tax. Therefore, the vehicles of petitioner were directed to be released on payment of amount determined in the order.