2020 (8) TMI 569 - HC - GST

Prompt Decision on Goods Release Application Required Under GST Act Section 67

The court directed the competent authority to promptly decide on the writ applicants' application for the provisional release of goods seized under ... Confiscation of Detained and seized goods - section 130 of CGST Act - power of inspection, search and seizure - HELD THAT:- We suggested to Mr. Poddar that his clients should prefer an appropriate application under Section 67(6) of the Act for the provisional release of the goods. Mr. Poddar submits that his clients will prefer an appropriate application for the provisional release of the goods, however, this Court may direct the competent authority to pass an appropriate order on such application at the earliest. Without going into the merits of this case, we dispose of this writ application with the direction that pending the confiscation proceedings, if the writ applicants file an application under Section 67(6) of the Act for provisional release of the goods and the vehicle, if any, then the competent authority shall look into the same at the earliest and pass an appropriate order on such application within a period of fifteen days from the date of receipt of such application. Application disposed off. Issues:1. Seizure and detention of goods under Section 67 of the Central Goods and Services Tax Act.2. Provisional release of goods pending confiscation proceedings.3. Application under Section 67(6) for provisional release of goods.4. Competent authority's power to pass an order for provisional release of goods.5. Directions for the disposal of the writ application.Analysis:The writ applicants sought relief to quash a press note, set aside an impugned summon, and prevent actions against the petitioner under GST laws. The goods in question were seized under Section 67 of the CGST Act, and the counsel for the writ applicants aimed to secure the release of the goods pending confiscation proceedings. The counsel highlighted that a notice under Section 130 of the Act was served, and the liability towards tax, penalty, and fine was yet to be adjudicated.The court referred to Section 67(6) of the Act, which allows for the provisional release of seized goods upon execution of a bond, furnishing security, or payment of applicable tax, interest, and penalty. The competent authority was empowered to order provisional release subject to specified terms and conditions. The court advised the counsel to file an application under Section 67(6) for the goods' provisional release, directing the competent authority to decide on the application promptly.The court disposed of the writ application with specific directions. Firstly, if the writ applicants filed an application under Section 67(6) for provisional release, the competent authority must review and decide on it within fifteen days. Secondly, the applicants were granted the right to appeal to the appellate authority under Section 107 if dissatisfied with the decision. The court clarified that it did not express any opinion on the case's merits, concluding the disposal of the writ application.