2019 (12) TMI 1003 - HC - GST

Court Orders Immediate Release of Conveyance upon Fine Deposit

The court directed the immediate release of the conveyance upon the petitioner's deposit of the determined fine under section 130 of the CGST Act. The ... Confiscation of conveyance - fine in lieu of confiscation - release of conveyance on deposit - opportunity of hearing under section 130 of the CGST Act - interim deposit subject to final adjudicationRelease of conveyance on deposit - fine in lieu of confiscation - Conveyance to be released forthwith on deposit of the amount determined in Form GST MOV-10 in lieu of confiscation - HELD THAT: - The Court directed that because the petitioner is ready and willing to deposit the amount computed by the respondent authorities in the notice issued in Form GST MOV-10 (under section 130 of the CGST Act), the respondents must forthwith release the conveyance upon such deposit. The direction is unconditional on final adjudication and is founded on the petitioner's willingness to make the payment determined in the notice, subject to the subsequent outcome of proceedings under section 130. [Paras 1, 3]Conveyance ordered released upon deposit of the amount specified in Form GST MOV-10.Opportunity of hearing under section 130 of the CGST Act - interim deposit subject to final adjudication - Deposit to be treated as a deposit subject to final outcome and respondents to afford hearing and pass order under section 130 - HELD THAT: - The Court clarified that the amount deposited by the petitioner shall be treated as a deposit and not as a final acceptance of liability; the respondent authorities are required to afford the petitioner a reasonable opportunity of hearing and thereafter pass a final order under section 130 of the CGST Act. The petitioner remains entitled to challenge any adverse order passed in those proceedings. [Paras 3]Deposit to be treated as interim; respondents directed to afford hearing and decide the matter under section 130, with liberty to the petitioner to challenge any adverse order.Final Conclusion: Petition disposed of subject to deposit by the petitioner and the respondents carrying out final adjudication under section 130 of the CGST Act after affording a reasonable hearing; the deposit to operate as an interim measure and not as prejudice to either party. Issues: Release of conveyance upon deposit of fine in lieu of confiscation under section 130 of CGST Act.Analysis:1. The petitioner, through their advocate, expressed readiness to pay the fine determined by the respondents for the release of the conveyance, subject to a final order under section 130 of the Central Goods and Services Tax Act, 2017/Gujarat Goods and Services Tax Act, 2017 after a hearing.2. The court considered the submissions of both parties, with the Assistant Government Pleader representing the respondents.3. Given the petitioner's willingness to deposit the determined amount in the notice issued under section 130 of the CGST Act, the court directed the immediate release of the conveyance upon such deposit. The deposited amount would be treated as a deposit pending the final outcome of proceedings under section 130. The respondents were instructed to provide the petitioner with a reasonable opportunity for a hearing before making a decision under section 130. The petitioner was also granted the right to challenge any adverse order resulting from these proceedings.4. The court disposed of the petition based on the mentioned observations and directions, thereby addressing the issue of releasing the conveyance upon the deposit of the fine in lieu of confiscation under section 130 of the CGST Act comprehensively.