Statutory appeal and provisional release under GST: writ merits declined, seized goods and vehicle released on bank guarantee.

Where an effective statutory appeal is available under the Rajasthan GST Act, the writ court declined to examine the merits and directed the petitioners to pursue that appellate remedy. At the same time, applying Rule 140 of the CGST Rules, the Court ordered provisional release of seized goods and the vehicle on furnishing a bank guarantee covering the prescribed value and tax-related amounts. Coercive confiscation action was restrained until disposal of the appeal, thereby preserving the statutory process while granting interim protection.

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Issues: (i) whether the writ petition should be entertained despite the availability of the statutory appeal under the Rajasthan State Goods and Services Tax Act, 2017; (ii) whether the seized goods and vehicle should be released provisionally on furnishing security and whether coercive action under the confiscation provision should be deferred pending appeal.

Issue (i): whether the writ petition should be entertained despite the availability of the statutory appeal under the Rajasthan State Goods and Services Tax Act, 2017

Analysis: The statutory appellate remedy was available against the penalty order. The Court treated the appeal as the proper forum to examine the validity of the impugned action and declined to enter into the merits of the controversy in writ jurisdiction.

Conclusion: The writ court did not decide the merits and directed the petitioners to pursue the appellate remedy.

Issue (ii): whether the seized goods and vehicle should be released provisionally on furnishing security and whether coercive action under the confiscation provision should be deferred pending appeal

Analysis: Rule 140 of the Central Goods and Services Tax Rules, 2017 permits provisional release of seized goods on execution of a bond and furnishing of bank guarantee for the value of the goods and the amount of tax, interest and penalty payable. Applying that framework, the Court directed release of the goods and vehicle on furnishing of bank guarantee and protected the petitioners from coercive confiscation action during the pendency of the appeal.

Conclusion: The goods and vehicle were directed to be released on bank guarantee, and no action under the confiscation provision was to be taken until disposal of the appeal.

Final Conclusion: The writ petitions were disposed of by preserving the statutory appellate process while granting provisional protection to the petitioners through release of the seized goods and vehicle on security.

Ratio Decidendi: Where an effective statutory appeal is available, the writ court may decline merits adjudication yet grant provisional release of seized goods on furnishing of bank guarantee under the GST rules, while restraining coercive confiscation action till the appeal is decided.

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