High Court Urges Prompt Inquiry on Detention Order Challenge

The High Court directed the authority to expedite the inquiry process concerning the challenge to the order of detention and notice issued under Section 130 of the Central Goods and Services Tax Act, 2017. Emphasizing the need for prompt resolution, the Court advised the petitioner on seeking provisional release under Section 67(6) if the goods were perishable. The judgment focused on ensuring due consideration of the petitioner's response and providing an opportunity for a hearing, without expressing an opinion on the case's merits. The Court underscored the importance of lawful procedures in handling the detention and potential confiscation of goods and conveyance under the GST Act.

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Issues:
Challenge to order of detention passed in Form GST MOV-06 and notice issued in Form GST MOV-10 under Section 130 of the Central Goods and Services Tax Act, 2017.

Analysis:
The High Court heard arguments from the petitioner's counsel and the State respondent's A.G.P. regarding the challenge to the order of detention and notice issued. The goods and conveyance were seized due to discrepancies noted in Form GST MOV-06, with a subsequent notice in Form GST MOV-10 issued under Section 130 of the Act. The authority is yet to make a final decision on confiscation, and the inquiry is ongoing. The petitioner's counsel highlighted that a detailed reply was submitted to the notice, but no final decision has been made so far. The goods, being perishable tobacco products seized on 6th November 2020, were emphasized as needing prompt resolution. The Court directed the authority to complete the inquiry expeditiously after considering the petitioner's reply and providing an opportunity for a hearing. If the goods are perishable, the petitioner can apply for provisional release under Section 67(6) of the Act, with a directive for immediate consideration by the authority.

The Court disposed of the writ application, clarifying that no opinion was expressed on the case's merits. The focus was on expediting the inquiry process, ensuring due consideration of the petitioner's response, and providing an opportunity for a hearing. The petitioner was advised on the option to seek provisional release under Section 67(6) if the goods were perishable. The judgment emphasized the need for timely resolution and lawful procedures in handling the detention and possible confiscation of goods and conveyance under the GST Act.

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