Court allows retention of vehicle under Karnataka GST Act with Bank Guarantee, warns of seizure.

The court disposed of the writ petition challenging an order under Section 129 of the Karnataka Goods and Services Tax Act, 2017. The parties agreed that the petitioner could retain the vehicle by providing a Bank Guarantee for the value of the goods. Failure to comply would result in seizure and detention of the vehicle with police and RTO assistance. The court acknowledged the agreement and concluded the case based on the understanding between the parties.

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Issues:
Challenge to order under Section 129 of Karnataka Goods and Services Tax Act, 2017 for detention and seizure of transport vehicle.

Analysis:
The judgment concerns the challenge to an order dated 11.03.2019 under Section 129 of the Karnataka Goods and Services Tax Act, 2017. This section allows for the detention and seizure of a transport vehicle used for goods transportation in certain circumstances. The respondents, represented by the Additional Government Advocate and a Commercial Tax Officer, argue that the order is justified as per the provisions of Section 129. The section outlines the process for detention, seizure, and release of goods and conveyances in transit when goods are transported or stored in contravention of the Act or rules. It specifies conditions for release, including payment of applicable tax and penalty, furnishing security, and issuance of notices by the proper officer. Importantly, it mandates providing an opportunity to the concerned person to be heard before determining tax, interest, or penalty.

The court notes that despite initial resistance, both parties now agree that the petitioner can retain the vehicle by providing a Bank Guarantee for the value of the goods in question by a specified date. Failure to comply would authorize the official respondents to seize and detain the vehicle with the assistance of the police force and RTO if necessary. With this agreement recorded, the court disposes of the writ petition based on the understanding reached between the parties.

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