Immediate release of seized goods during transit subject to conditions

The court directed the immediate release of perishable goods and conveyance seized during transit, subject to specific conditions, including a deposit towards tax and penalty and a bank guarantee. The court clarified that the release did not determine the case's merits, allowing confiscation proceedings to continue. The writ application was disposed of, permitting the authority to proceed with adjudication independently.

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Issues:
1. Seizure and detention of goods and conveyance during transit.
2. Notice for confiscation of goods and conveyance under Section 130 of the Act.
3. Legality and validity of the actions taken by the authority.
4. Release of perishable goods pending confiscation proceedings.

Analysis:

Issue 1: Seizure and detention of goods and conveyance during transit
The petitioner, a businessman engaged in trading agricultural products, had a consignment of groundnuts dispatched from Madhya Pradesh to Gujarat. However, on 2nd June 2020, the truck carrying the goods was intercepted by the respondent at Vasad due to discrepancies in the invoice and E-way bill. Consequently, the goods and the conveyance were seized and detained.

Issue 2: Notice for confiscation of goods and conveyance under Section 130 of the Act
The petitioner was served with a notice for confiscation of goods and conveyance in form GST MOV-10, with a total liability amounting to Rs. 6,21,000. The notice also proposed the imposition of fines totaling Rs. 5,40,000 along with additional penalties. The date for the show cause notice hearing was set for 19th June 2020.

Issue 3: Legality and validity of the actions taken by the authority
The counsel for the petitioner raised objections regarding the legality and validity of the actions taken by the authority, particularly questioning the issuance of the show cause notice under Section 130 of the Act. However, the court decided not to delve into the merits of the matter and allowed the authority to proceed with the adjudication process.

Issue 4: Release of perishable goods pending confiscation proceedings
Considering the perishable nature of the goods (groundnuts), the court ordered the immediate release of the goods and conveyance under certain conditions. The petitioner was directed to deposit Rs. 54,000 towards tax and penalty, with the remaining amount of Rs. 5,67,000 to be provided as a bank guarantee from a nationalized bank. Upon compliance with these conditions, the authority was instructed to release the goods and conveyance. The court clarified that the decision to release the goods did not imply a judgment on the merits of the case, and the confiscation proceedings would continue as per the law.

In conclusion, the writ application was disposed of with the directive for the release of the goods and conveyance, subject to the specified conditions, while allowing the confiscation proceedings to proceed independently.

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