Release of Seized Goods & Vehicle Upon Deposit of Penalty Amount: Compliance Required

The court ordered the release of seized goods and vehicle upon the petitioner's deposit of the penalty amount of Rs. 67,010 in cash or through a bank draft, along with an indemnity bond. Compliance with the court's order was required for the respondent to promptly release the goods.

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Issues:
Challenge of seizure of goods and vehicle, initiation of penalty proceedings under Sections 129(1) and 129(3) of the U.P. Goods & Service Tax Act, 2017.

Analysis:
The petitioner, a Transport Company, filed a writ petition challenging the seizure of goods and vehicle, as well as penalty proceedings under the U.P. Goods & Service Tax Act, 2017. The goods loaded in the vehicle were being transported from Delhi to Jharkhand for various registered dealers, accompanied by goods receipts and tax invoices. The petitioner downloaded a transit declaration Form-1 at the U.P. Border for Inter-State movement of goods. The vehicle was intercepted by the Assistant Commissioner, State Tax, who seized 32 packets valued at Rs. 3,59,220, alleging discrepancies in the accompanying documents. A show cause notice was issued for a penalty of Rs. 67,010 under Section 129(3) of the GST Act.

Upon hearing the parties, it was established that the goods were intended for inter-state transportation, and the petitioner, as a transporter, had mistakenly downloaded a transit declaration form under the VAT Act, not relevant to the CGST Act, 2017. The seizing authority found an excess of goods worth Rs. 3,59,220. As the petitioner was not a registered dealer, they were directed to deposit Rs. 67,010, representing the tax liability, for the release of the seized goods and vehicle.

The court disposed of the writ petition by ordering the release of goods and vehicle upon the petitioner's deposit of Rs. 67,010 in cash or through a bank draft, along with an indemnity bond covering the penalty amount. Compliance with the order was mandated, and the respondent was instructed to release the goods promptly upon fulfillment of the specified conditions.

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