Detention Order Under GST Section 129 Set Aside for Violating Natural Justice; Goods to be Released After Tax Payment

HC set aside an order under Section 129 of West Bengal GST Act that detained goods without providing the petitioners an opportunity of hearing. The Court directed release of goods upon payment of tax and penalty as per Section 129(1), with authorities to complete release within 72 hours of payment. The matter was remanded for fresh decision after proper hearing, with the Court clarifying that the order was set aside solely for violation of natural justice principles, not on merits.

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Issues: Challenge to impugned order dated 29th January, 2022 under Section 129 of West Bengal Goods and Service Tax Act, 2017.

The High Court of Calcutta, in the case of WPA 297 of 2022, dealt with a writ petition challenging the impugned order passed by the Deputy Commissioner of Revenue, State Tax, Bureau of Investigation, North Bengal, Alipurduar Zone on 29th January, 2022. The petitioners contended that the impugned order, which detained goods without providing them an opportunity of hearing as required under Section 129 of the West Bengal Goods and Service Tax Act, 2017, was unlawful. The petitioners expressed their willingness to pay the tax and penalty as per the provisions of Section 129 of the Act.

Upon considering the submissions of the parties and acknowledging that the petitioners claimed ownership of the detained goods and were prepared to pay the applicable tax and penalty, the Court ordered the release of the goods upon payment in accordance with the amended provision of Section 129(1) of the Act. The authorities were directed to release the goods within 72 hours of receiving the payment, emphasizing the importance of justice. The impugned order of 29th January, 2022 was set aside due to the petitioners being denied a hearing, and the matter was remanded to the concerned authority for a fresh decision after providing an opportunity of hearing to the petitioners or their authorized representative. The Court expected the fresh order to be passed promptly.

It was clarified by the Court that the setting aside of the impugned order was solely based on the violation of the principle of natural justice, as the petitioners were not granted a hearing, and not on the merits of the order itself. With these directions and observations, the writ petition, WPA 297 of 2022, was disposed of by the High Court of Calcutta.

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