Interim Order for Release of Detained Goods under GST Act

The Court granted an interim order for the release of a vehicle and goods detained under the Central Goods and Service Tax Act, 2017. The writ applicant, a registered dealer, faced detention and seizure of goods due to lack of an E-way Bill. While reserving decision on certain issues, the Court directed the applicant to deposit the tax amount and penalty under section 129 for release. Additionally, the applicant was instructed to provide a Bank Guarantee for Rs. 2,05,768 to secure release, with a directive to halt further proceedings under section 130. Compliance with interim directives was mandated pending adjudication.

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Issues:
1. Detention and seizure of goods under the Central Goods and Service Tax Act, 2017.
2. Invocation of sections 129 and 130 of the Act without proper inquiry.
3. Interim order for release of the vehicle and goods.
4. Requirement of deposit for release under section 129.
5. Direction to furnish a Bank Guarantee for release.

Analysis:

1. The judgment addresses the detention and seizure of goods under the Central Goods and Service Tax Act, 2017. The writ applicant, a registered dealer, purchased aluminum sections which were intercepted in transit without a furnished E-way Bill, leading to detention and subsequent seizure by respondent No.3. A notice was issued under sub-section (3) of section 129, followed by a notice for confiscation of goods and penalty under section 130 of the Act.

2. The Court notes the concern raised in similar petitions regarding the immediate invocation of section 130 without a proper inquiry. The judgment reserves the decision on these issues but grants an interim order for the release of the vehicle and goods in this particular case, aligning with the approach taken in similar matters.

3. In light of the provisions of section 129, the Court determines that for the release of the goods, the writ applicant can be asked to deposit the tax amount determined along with an equivalent penalty, while maintaining the right to adjudication regarding the confiscation proceedings under section 130.

4. As an interim measure, the Court directs the writ applicant to furnish a Bank Guarantee amounting to Rs. 2,05,768. Upon providing the Bank Guarantee, the authority is instructed to release the vehicle and goods, with a specific directive to halt further proceedings on the show cause notice issued for confiscation under section 130 of the Act, 2017.

5. The judgment concludes by permitting the respondent Nos.1, 2 & 3 to act accordingly, ensuring compliance with the interim directives issued for the release of the vehicle and goods, and the suspension of further action under section 130 pending adjudication.

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