Undervaluation Can't Lead To Seizure Of Goods In Transit By Inspecting Authority: Karnataka High Court

In a recent ruling, the Karnataka High Court addressed the issue of goods being seized for undervaluation during transit. The court emphasized that the inspecting authority must have sufficient grounds to suspect undervaluation before seizing goods. It stated that mere suspicion or irregularities in documents are insufficient grounds for seizure. The court highlighted procedural lapses in seizing goods without following due process, such as not providing a reasonable opportunity to the owner to explain or rectify the alleged undervaluation. This decision underscores the importance of procedural fairness and adherence to legal standards in such cases, ensuring that inspecting authorities act within the scope of their powers and with reasonable cause.