2018 (4) TMI 1139 - HC - GST

Solar Modules Seizure Lifted: Tax Guarantee Enables Release Under GST Regulations with Balanced Compliance Approach

The HC allowed the writ petition challenging goods seizure under GST Act. The court ordered release of seized solar modules upon submission of a bank ... Seizure under Section 129(1) of the U.P. GST Act - Consequential notice under Section 129(3) of the U.P. GST Act - Non-production/non-download of e-way bill due to technical malfunction - Release of seized goods and vehicle on bank guaranteeSeizure under Section 129(1) of the U.P. GST Act - Non-production/non-download of e-way bill due to technical malfunction - Release of seized goods and vehicle on bank guarantee - Whether the seized vehicle and goods should be released pending adjudication where the ground for seizure was non-download of the e-way bill but a technical problem in downloading has been shown and penalty proceedings have not yet been initiated. - HELD THAT: - The Court recorded that the petitioner, a trader of P.V. solar modules, had transported accounted-for goods from West Bengal to Ghaziabad and that the seizure under the Act was premised on the e-way bill not being downloaded. It was found on the record that the failure to download the e-way bill arose from some problem in downloading prior to the seizure and that no penalty order has been passed to date. Balancing the factual position that the goods were accounted for, the stated cause of non-download being technical, and the absence of a concluded penalty proceeding, the Court exercised its supervisory jurisdiction to order interim relief by conditional release of the seized vehicle and goods subject to provision of security to protect revenue interests.Seized vehicle and goods released forthwith on deposit of a bank guarantee equal to the value of the tax on the goods.Final Conclusion: Writ petition disposed by directing immediate release of the seized vehicle and goods on furnishing a bank guarantee equal to the tax value, in view of the recorded technical difficulty in downloading the e-way bill and absence of any penalty order. The petitioner challenged a seizure order under Section 129(1) U.P. GST Act due to E-Way Bill issue. The petitioner, engaged in trading of P.V. Solar Modules, had goods seized while being transported from West Bengal to Ghaziabad. The court ordered release of the seized goods upon deposit of a bank guarantee equal to the tax value. The writ petition was disposed of by the Allahabad High Court.