Dismissal of Writ Petition Over GST Penalty Upheld; Appeal Remedy Granted

The Court dismissed the writ petition challenging the detention order and penalty imposed under the CGST Act, 2017 and IGST Act. It directed the petitioner to avail the statutory remedy of appeal under section 107 of the GST Act, 2017, granting liberty to challenge the order upon depositing the due amount. The petitioner was allowed to seek interim custody of the vehicle upon filing the appeal. The Court emphasized compliance with the law for depositing the due amount and prompt consideration of any application for interim custody.

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Issues:
1. Challenge to detention order and penalty imposed under CGST Act, 2017 and IGST Act.
2. Availability of statutory remedy of appeal under section 107 of the GST Act, 2017.
3. Petitioner's request for release of the truck and interim custody.

Analysis:

1. The petitioner, a transporter, challenged the detention order and penalty imposed on his truck under section 129(1) of the CGST Act, 2017 and section 20 of the IGST Act. The detention occurred on 18.11.2019 when the vehicle was checked, documents were taken, and an order was passed without hearing the petitioner. The penalty amount imposed was &8377; 37,42,935 on the goods loaded in the truck. The petitioner contended that he was ready to pay the due amount, including the penalty, and requested the release of his truck.

2. The learned Standing Counsel for the State-respondents highlighted that an appeal under section 107 of the GST Act, 2017 was available against the order dated 22.11.2019. Therefore, the State requested the dismissal of the writ petition based on the existence of the statutory remedy of appeal. The Court acknowledged the availability of the statutory remedy and directed the petitioner to challenge the order under section 107 of the GST Act, 2017. The petitioner was granted liberty to file an appeal after depositing the entire due amount as per the order dated 22.11.2019. Additionally, the petitioner was allowed to seek interim custody of the vehicle upon application along with the appeal.

3. In light of the statutory remedy of appeal, the Court disposed of the writ petition, granting the petitioner the liberty to challenge the order under section 107 of the GST Act, 2017. The petitioner was instructed to deposit the complete due amount and provide a copy of the receipt. Any application for interim custody, if submitted with the appeal, would be decided promptly within a week from the appeal's filing date. The Court emphasized the need for a detailed and reasoned order in such a scenario, ensuring compliance with the law for depositing the due amount.

This judgment highlights the importance of statutory remedies available under the GST Act, 2017, and the procedural requirements for challenging detention orders and penalties imposed under the CGST Act, 2017 and IGST Act.

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