High Court ruling: Owner can pay to release goods in confiscation proceedings

The High Court of Kerala held that the 1st respondent must comply with statutory provisions allowing the owner of perishable goods subject to confiscation proceedings under Section 130 of the Central Goods and Service Tax Act, 2017, to make payment in lieu of confiscation. The court emphasized the requirement for the respondent to release the goods upon the petitioner's offer to pay the specified amount. The judgment directed the release of goods to the petitioner upon payment and scheduled further proceedings accordingly.

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Issues Involved:
1. Interpretation of Section 130 of the Central Goods and Service Tax Act, 2017 regarding confiscation proceedings and payment in lieu of confiscation.

Analysis:
The judgment by the High Court of Kerala involved a case where the petitioner's goods were subject to confiscation proceedings, with the goods being perishable in nature. The learned Senior Counsel highlighted that the petitioner was willing to pay the amount in lieu of confiscation as provided under Section 130 of the Central Goods and Service Tax Act, 2017. The court noted that the Act mandates that when confiscation proceedings are authorized, the officer must give the owner of the goods an option to pay in lieu of confiscation. The Senior Counsel argued that despite the petitioner's willingness to pay, the 1st respondent was not complying with the statutory requirement.

Upon considering the arguments presented, the court held that the 1st respondent is obligated to adhere to the statutory provisions. The court emphasized that the Statute clearly provides an opportunity for the owner of the goods to make the required payment in lieu of confiscation as specified under Section 130(2) of the Act. The court concluded that if the petitioner offers to pay the specified amount, the 1st respondent must release the goods to the petitioner. The judgment directed the release of goods in favor of the petitioner upon payment and scheduled the matter for further proceedings on a specified date.

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