Tax Goods Detention: Section 129 Compliance Allows Withdrawal of Section 130 Confiscation Order with Conditional Resolution

HC ruled on tax goods detention case. State agreed to withdraw Section 130 confiscation order, allowing petitioner to address Section 129 proceedings. Petitioner must pay required tax and penalty by specified date or risk further legal action, including potential goods confiscation. Case disposed with procedural directives for compliance.

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Issues:
1. Detention of goods due to lack of proper documents.
2. Confiscation order under Section 130 of the Punjab Goods and Services Tax Act, 2017.
3. Proceedings under Section 129 of the Act.
4. Petitioner's compliance with tax and penalty requirements.
5. Disposal of the petition and future course of action.

Detention of Goods:
The petitioner sought the release of detained goods, asserting payment of due tax. The goods were held on 24.8.2018 due to inadequate accompanying documents. Notably, no tax or penalty order was issued under Section 129 of the Act despite a post-detention notice.

Confiscation Order under Section 130:
An order confiscating the goods was issued on 7.9.2018 under Section 130 of the Act. However, the State, represented by the Proper Officer, agreed to withdraw this order upon completion of proceedings under Section 129, ensuring the petitioner's right to a hearing. The petitioner did not object to this proposed procedure.

Proceedings under Section 129:
The State committed to concluding proceedings under Section 129 by affording the petitioner a hearing. If the petitioner fails to pay the tax and penalty as per Section 129, the State reserves the right to invoke Section 130 for confiscation.

Petitioner's Compliance:
The petitioner must deposit the tax and penalty by the specified date to avoid further action. Failure to comply will empower the State to proceed under the law, potentially invoking Section 130 for confiscation.

Disposal of the Petition:
After hearing both parties, the petition was disposed of, allowing the State to withdraw the confiscation order under Section 130. The petitioner was directed to appear before the Proper Officer on a specified date. The State retains the liberty to take further action if the petitioner fails to meet the tax and penalty obligations outlined in Section 129.

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