GST seizure of unrecorded goods at disclosed premises upheld, but provisional release security was reduced.

Goods kept at a disclosed business premises but omitted from regular books of account may still be treated as goods "secreted in any place" for seizure purposes under the Uttar Pradesh GST regime, because the expression covers goods hidden from revenue authorities and is not confined to undisclosed premises. Where such unrecorded goods are found, a rebuttable presumption of secrecy may arise. On the facts, the seizure was sustained, but the provisional release condition was eased: the goods were directed to be released on payment of cash security equal to 50% of the contemplated tax and penalty, with an indemnity bond for the balance.

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Issues: Whether goods found at a disclosed place of business, but not recorded in the regular books of account, could be treated as goods "secreted in any place" for the purpose of seizure under Section 67(2) of the Uttar Pradesh Goods and Services Tax Act, 2017, and whether the security demanded for release of the seized goods was excessive.

Analysis: The expression "secreted in any place" was construed in its statutory context to include goods kept hidden from the revenue authorities for purposes of self-assessment, and not merely goods kept at an undisclosed premises. Since the assessee had admittedly not recorded the goods in its regular books, a rebuttable presumption arose that the goods were secreted. The phrase "in any place" was held to cover both disclosed and undisclosed places of business. However, as the seizure had been made from a disclosed business premises and the proceedings had not been finalized, the Court found it to permit release of the goods against part cash security and the balance by indemnity bond.

Conclusion: The seizure was upheld, but the security condition for provisional release was modified in favour of the assessee by directing release of the goods on furnishing cash security to the extent of 50% of the contemplated tax and penalty and an indemnity bond for the balance.

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