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

The Karnataka High Court ruled on a case involving the seizure of goods due to alleged undervaluation during transit. The petitioner challenged the action of the inspecting authority, arguing that no opportunity was given to explain or rectify the alleged undervaluation before seizure. The court observed that principles of natural justice were violated as the authorities did not provide a fair opportunity for explanation. It emphasized that seizure based solely on undervaluation allegations without such an opportunity is unjustified. The court directed the authority to release the goods upon payment of a security deposit and allowed the petitioner to contest the undervaluation claim through proper adjudication channels. This case underscores the importance of procedural fairness in such enforcement actions.