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Court allows petition challenging detention order & show-cause notice under CGST Act. Release of goods upon payment. The court partly allowed the petition challenging a detention order under section 129(1) of the CGST Act and a show-cause notice under section 130. The ...
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Court allows petition challenging detention order & show-cause notice under CGST Act. Release of goods upon payment.
The court partly allowed the petition challenging a detention order under section 129(1) of the CGST Act and a show-cause notice under section 130. The petitioner agreed to pay tax and penalty under protest, leading to the release of goods and conveyance upon payment of 39,672. The court directed the petitioner to deposit the specified amount with the respondent for immediate release, with the deposited amount considered under protest and subject to the final outcome of proceedings under section 130. The rule was made absolute for the provided directions, allowing direct service of the order.
Issues: Challenge to detention order under section 129(1) of the CGST Act and show-cause notice under section 130 of the CGST Act.
Analysis: The petitioner, engaged in the business of metal scrap, had an order for brass scrap from a buyer in Gujarat. During transportation, due to a change in conveyance, the driver of one of the vehicles did not have the necessary documents for 4 parcels of goods. Consequently, the goods were detained, and a detention order was issued under section 129(1) of the CGST Act, along with a show-cause notice under section 130. The petitioner, after initially expressing reservation, later agreed to pay the tax and penalty under protest as computed by the respondent. The court, considering the narrow scope of the issue, directed the release of goods and conveyance upon the petitioner paying the tax and penalty amounting to &8377; 39,672 under protest, subject to the final outcome of the proceedings under section 130, without prejudice to the petitioner's right to challenge any adverse order.
The court noted that the petitioner had replied to the show-cause notice and expressed willingness to pay the tax and penalty leviable under section 129 of the CGST Act. Despite the petitioner's cooperation, the goods and conveyance were not released by the respondents, leading the petitioner to seek relief from the court. The court, after hearing both parties, directed the petitioner to deposit the specified amount with the respondent, upon which the goods and conveyance were to be released, with the deposited amount treated as made under protest and subject to the final outcome of the proceedings under section 130.
In the judgment, the court partly allowed the petition, issuing directions for the petitioner to deposit the specified amount with the respondent, leading to the immediate release of the conveyance and goods. The deposited amount was to be considered a deposit made under protest, ensuring the petitioner's right to challenge any adverse order resulting from the ongoing proceedings under section 130 of the CGST Act. The court made the rule absolute to the extent of the directions provided, permitting direct service of the order.
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