Goods in transit cannot be confiscated for Under-valuation & Wrong Route

Karnataka Traders Vs State of Gujarat (Gujarat high Court)

In this case Hon’ble Gujarat High Court quashed the entire confiscation proceedings keeping in mind two things: first, mere change of route without anything more would not necessarily be sufficient to draw an inference that the intention was to evade tax. Sometime, change of route may assume importance provided there is cogent material with the department to indicate that an attempt was sought to be made to dispose of the goods indirectly at a particular place.

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