2018 (12) TMI 65 - HC - GST

Allahabad HC Orders Release of Detained Goods Under U.P. GST

The Allahabad HC ordered the release of goods detained under U.P. GST by the respondents upon furnishing security and indemnity bond. The petitioner's ... Detention of goods in transit - release on furnishing security and indemnity bond under Section 129(1)(a) and (b) of U.P. GST - interim release pending adjudication - owner of goods entitled to release on furnishing security other than cash or bank guaranteeRelease on furnishing security and indemnity bond under Section 129(1)(a) and (b) of U.P. GST - interim release pending adjudication - owner of goods entitled to release on furnishing security other than cash or bank guarantee - Direction for immediate release of detained goods and vehicle on specified security and indemnity bond granted as interim relief - HELD THAT: - The Court directed that, pending adjudication, the detained goods and vehicle be released forthwith to the petitioner as owner on furnishing security (other than cash or bank guarantee) equivalent to the proposed tax and penalty and an indemnity bond for the same amount, in terms of the release mechanism prescribed under Section 129(1)(a) and (b) of the U.P. GST. The order operates as an interim relief while the substantive dispute about alleged violation of the Act remains to be decided. The Court exercised its supervisory jurisdiction to balance the claim of ownership and preservation of revenue by conditioning release on adequate security and indemnity.The petition succeeds insofar as interim release on specified security and indemnity bond is directed.Detention of goods in transit - adjudication of validity of seizure - Respondents directed to file counter-affidavit and the matter listed for final disposal after parties complete pleadings - HELD THAT: - The Court did not decide the merits of whether the goods were lawfully detained or whether any provision of the Act was violated. Instead, the Court permitted the respondents time to obtain instructions and file a counter-affidavit within three weeks, with one week thereafter for rejoinder, and listed the matter for admission/final disposal after completion of these pleadings. The direction preserves the respondents' opportunity to contest the seizure and the petitioner's claim, while the interim release order remains subject to the security and indemnity condition.Matter remanded for filing of counter-affidavit and adjudication; final disposal to follow upon completion of pleadings.Final Conclusion: Interim relief granted: detained goods and vehicle to be released forthwith to the petitioner on furnishing security (other than cash or bank guarantee) and an indemnity bond equivalent to the proposed tax and penalty; respondents permitted to file counter-affidavit and the matter listed for final disposal thereafter. The Allahabad High Court directed the release of goods detained in transit by the respondents under U.P. GST on furnishing security and indemnity bond. The petitioner's goods and vehicle are to be released immediately upon providing security equivalent to proposed tax and penalty under Section 129(1)(a) of U.P. GST. The case is listed for admission/final disposal after three weeks.