Court Orders Vehicle Release Pending Security Deposit

The court directed the immediate release of the petitioner's vehicle as an interim measure, subject to the petitioner furnishing security before the relevant authority in accordance with the provisions of Section 129(1)(c) of The Central Goods and Services Tax Act, 2017. The interim relief application was disposed of, allowing for the release of the vehicle upon compliance with the specified security requirements.

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Issues:
1. Seizure of vehicle and imposition of penalty for expired e-way bill validity.

Analysis:
The petitioner sought to quash the order of seizure of a vehicle with a specific chassis number, passed by respondent no.3 under GST MOV-06/MOV-07. The petitioner's vehicle was seized for an expired e-way bill validity, resulting in a penalty of Rs. 5,03,125. The petitioner argued that a fresh e-way bill was generated after the expiration date, valid until a later date, but the penalty and seizure were still imposed.

The learned Senior Counsel highlighted Section 129(1)(c) of The Central Goods and Services Tax Act, 2017, which deals with detention, seizure, and release of goods and conveyances in transit. The section outlines the conditions for release of goods and conveyance, including payment of applicable tax and penalty, or furnishing security equivalent to the amount payable. In this case, the petitioner requested release of the vehicle by providing security as per the provisions of clause (c) of the said section.

After considering the arguments, the court directed the immediate release of the petitioner's vehicle as an interim measure, subject to the petitioner furnishing security before the relevant authority in accordance with the provisions of Section 129(1)(c) of The Central Goods and Services Tax Act, 2017. The interim relief application was disposed of, allowing for the release of the vehicle upon compliance with the specified security requirements.

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