Importance of Timely Disposal of Seized Goods Under GST Act | Compliance with Section 67(8) & Rule 141

The Allahabad High Court, in a judgment by Justices Bharati Sapru and Rohit Ranjan Agarwal, disposed of a writ petition concerning the release of perishable and hazardous goods under the Central Goods and Services Tax Act, 2017. The court emphasized the importance of following the Act's specified procedure, including prompt disposal of such goods after seizure. Compliance with Section 67(8) and Rule 141 was deemed crucial for timely release, with the court stressing the need to adhere to legal requirements and timelines to prevent adverse consequences.

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Issues: Release of perishable and hazardous goods under Central Goods and Services Tax Act, 2017

In this judgment by the Allahabad High Court, the issue at hand was the release of goods that were both perishable and hazardous in nature. The court noted that the Central Goods and Services Tax Act, 2017 provides a specific procedure for the release of such goods, as outlined in section 67(8) of the Act read with Rule 141 of the relevant Rules. According to Section 67(8), the government has the authority to specify perishable or hazardous goods that should be disposed of promptly after seizure, considering various factors such as depreciation in value, storage constraints, and other relevant considerations. Rule 141 details the procedure for seized goods, stating that if the taxable person pays an amount equivalent to the market price of the goods or the tax, interest, and penalty payable, whichever is lower, the goods must be released immediately upon payment. The court emphasized that compliance with these legal provisions would enable the release of the seized goods within the following week.

The judgment, delivered by Justices Bharati Sapru and Rohit Ranjan Agarwal, concluded that the writ petition regarding the release of the perishable and hazardous goods was disposed of in accordance with the aforementioned provisions of law. The ruling highlighted the importance of following the prescribed procedure under the Central Goods and Services Tax Act, 2017 to ensure the timely release of such goods. The judgment underscored the significance of adhering to legal requirements and timelines in cases involving perishable and hazardous goods to prevent any adverse impact on the goods or the parties involved.

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