Where Competent Authority had detained goods under transport as well as vehicle and thereafter passed an order for confiscation of goods and vehicle, since goods were duly accompanied by valid documents, there was no reason for Competent Authority to confiscate the same.

Facts of the case:

1. Petitioner is engaged in the business of metal and was transporting brass electrical parts from Jamnagar to Delhi through a goods carrier agency.
2. Vehicle was intercepted by the competent authority. Driver of the truck produced invoice, e-way bill and lorry receipt before the competent authority.
3. Competent authority detained goods of the assessee under transport as well as the vehicle on the ground that details in bilty required verification and further passed an order calling upon the assessee to pay tax and penalty.
4. Thereafter, Competent Authority passed an order under section 130 for confiscation of goods of assessee and conveyance.

Held:

1. Despite the fact that no discrepancy appears to have been found after the inspection of goods and conveyance, authority has not issued a release order.
2. No discrepancy has been found in bilty after verification, despite the fact that conveyance has been detained for that purpose.
3. Since it was apparent from record that goods under transport were duly accompanied by documents and no discrepancy was found in connection therewith, there was no reason for the competent authority to confiscate the same.
4. In view of the aforesaid, the order issued by the competent authority under section 130 as well as order of demand of tax and penalty issued are quashed and set aside.

Source: Insha Trading Company v. State of Gujarat