Department is legally obligated to preserve the seized goods seized and return in the same condition to the assessee or pay equivalent compensation
Ashupatinath Dhandania Vs. Union of India [2014 (9) TM! 578- Calcutta High Court]
In the instant case, Ashupatinath Dhandania (the Petitioner) has filed a writ petition before the Calcutta High Court complaining about the in action on the part of the authorities for not releasing the goods confiscated by the Revenue.
The goods of the Petitioner were seized by the authorities. However, on appeal the Petitioner succeeded and the order relating to seizure of the goods was set aside. The Petitioner approached the Department for return of the seized goods. The authorities did not release the seized goods.
The Hon’ble Calcutta High Court has held that action of the authority concerned was not justified in withholding the seized goods since the order relating to the seizure of goods was set aside. The Hon’ble High Court relied on the case of State of Gujarat Vs. M.M. Hazi Hasan [AIR 1967 SC 1885] and ordered the Revenue to hand over the exact quantity of the goods seized to the Petitioner as shown in the seizure list or pay equivalent money for the quantity of the seized goods at the present market rate to the Petitioner.