AQUA INFRA PROJECTS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Petitioner has challenged an order dated 20.10.2016 passed by the Value Added Tax Tribunal ('the Tribunal' for short) confirming a revisional order dated 22.04.2015 passed by the revisional authority.

(2.) Brief facts are as under.

(3.) Petitioner is a company registered under the Companies Act and is engaged in the manufacture and sale of asbestos cement products and also deals in import and resale of raw asbestos fiber. The petitioner imported raw fiber asbestos from Hongkong which arrived at Mundra port. The goods were cleared on or around 20.08.2010. According to the petitioner, such goods were in transit for interstate sale when on 20.11.2011, the same were intercepted by the checkpost authorities at Shyamakhyali, Kachchh. The said authorities would not release the goods unless the petitioner deposited the entire duty with penalty at the rate of 150% thereon. The petitioner under compulsion, was made to deposit a sum of Rs. 10,24,256/- which comprised of the duty and penalty at the rate of 150% of the basic duty. The authorities passed an order dated 26.11.2010, in which, it was recorded that upon deposit of Rs. 4,09,702/- of duty and Rs. 6,14,554/- by way of penalty i.e. total of Rs. 10,24,256/-, the vehicle with the goods would be released. Eventually, upon the petitioner depositing such sum, the goods were actually released under an order dated 04.12.2010. This order recorded that the vehicle carrying the goods was detained on 20.11.2010 and since a sum of Rs. 10,24,256/- by way of duty plus penalty has been paid up by the petitioner in terms of section 68 of the Value Added Tax Act, as per the telephonic instructions received on 04.12.2010, the goods were released.