Court directs prompt adjudication of orthopedic implants consignment detention issue under GST Act Section 129

The Court directed authorities to promptly adjudicate the detention issue of orthopedic implants consignment under Section 129 of the GST Act. The final determination reduced the tax and penalty initially demanded, with the petitioner's counsel highlighting procedural discrepancies. The Court allowed the petitioner to pay the demanded amount under protest for the release of goods, advising contesting penalty proceedings before the appellate forum. Emphasizing the availability of the statutory appeal under Section 107 of the Act, the judgment disposed of the writ petition, guiding on addressing concerns related to detention, tax, and penalty under the GST Act.

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Issues:
Detention of consignment under Section 129 of GST Act; Determination of tax and penalty; Procedure followed by authorities; Adjudication of detention issue; Statutory appeal under Section 107 of the Act.

Detention of Consignment:
The petitioner, a dealer under the KVAT Act, faced detention of orthopedic implants consignment under Section 129 of the GST Act upon migration. The Court, through an interim order, directed authorities to adjudicate the detention issue promptly.

Determination of Tax and Penalty:
Initially, authorities demanded a substantial amount for interim custody and penalty. However, the final determination reduced the tax and penalty to a lesser amount. The petitioner's counsel argued procedural discrepancies and highlighted the authorities' lack of clarity in following the correct procedure.

Procedure Followed by Authorities:
The petitioner contended that authorities were unaware of the correct procedure for detention, as evidenced by the issuance of notices in an old format. The Government Pleader defended the authorities' actions, stating that the proper procedure was followed, and the petitioner could appeal under Section 107 of the Act if dissatisfied.

Adjudication of Detention Issue:
The Court, without delving into the merits of the case, allowed the petitioner to pay the demanded tax and penalty under protest to secure the release of goods. The petitioner was advised to contest the penalty proceedings before the appellate forum, ensuring due process and the right to challenge the penalty imposed.

Statutory Appeal under Section 107:
The judgment emphasized the availability of the statutory appeal mechanism under Section 107 of the Act for the petitioner to address any grievances regarding the tax, penalty, or detention issue. This provision ensures the petitioner's right to seek redressal through the established appellate process, maintaining legal recourse and procedural fairness.

In conclusion, the judgment disposed of the writ petition, providing guidance on the payment under protest, contesting penalty proceedings, and utilizing the statutory appeal route for addressing concerns related to the detention, tax, and penalty imposed during the transportation of goods under the GST Act.

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