Release of Goods Upon Payment: Emphasis on Statutory Compliance in Confiscation Proceedings

The court directed the release of goods in favor of the petitioner upon payment as per Section 130(2) of the Central Goods and Service Tax Act, 2017, emphasizing adherence to statutory provisions in confiscation proceedings, particularly for perishable goods. The judgment highlights the necessity for authorities to comply with the Act, offering owners the opportunity to pay in lieu of confiscation, thus safeguarding their rights and ensuring procedural fairness.

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Issues:
1. Confiscation proceedings concerning perishable goods under Section 130 of the Central Goods and Service Tax Act, 2017.

Analysis:

Issue 1: Confiscation proceedings concerning perishable goods under Section 130 of the Act
- The learned Senior Counsel highlighted that the goods in question were perishable.
- Section 130 of the Central Goods and Service Tax Act, 2017 mandates that in confiscation proceedings, the officer must offer the owner an option to pay in lieu of confiscation.
- The petitioner expressed willingness to pay the amount in lieu of confiscation, but the 1st respondent did not comply with the statutory requirement.
- The judge emphasized that the 1st respondent must adhere to the statute, which provides the opportunity for the owner to make the required payment instead of facing confiscation.
- It was clarified that if the petitioner offers to pay the amount specified under Section 130(2) of the Act, the 1st respondent must release the goods upon payment.
- The court directed the release of goods in favor of the petitioner upon payment as per the statute, emphasizing the clarity of the statutory provisions.

This judgment underscores the importance of following statutory provisions in confiscation proceedings and ensuring that the rights of the owner, especially concerning perishable goods, are upheld. The court's decision emphasizes the obligation of the authorities to comply with the provisions of the Act and provide the option for payment in lieu of confiscation as mandated by law.

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