Court grants interim relief for truck release upon fine payment under Section 130 of GST Act.

The Court granted ad-interim relief for the release of the truck upon payment of a specified fine as proposed in the notice issued under Section 130 of the Central Goods and Services Tax Act, 2017. The amount paid was treated as a deposit pending the final outcome, with the petitioner retaining the right to challenge any adverse order. The Court clarified that if a final confiscation order is issued, the petitioner can appeal under Section 107 of the Act, with success entitling the petitioner to a refund of the deposited amount.

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Issues:
1. Relief sought for the release of a truck under Article 226 of the Constitution of India.
2. Interpretation of provisions of section 130 of the Central Goods and Services Tax Act, 2017 regarding confiscation of conveyance and payment of fine.
3. Ad-interim relief granted for the release of the truck upon payment of a fine.
4. Uncertainty regarding the final order of confiscation under Section 130 of the Act and the right to appeal.

Analysis:

Issue 1: The writ applicant sought relief for the release of a truck under Article 226 of the Constitution of India, requesting a writ of mandamus or any appropriate order directing the respondents to release the truck.

Issue 2: The Court considered the provisions of section 130 of the CGST Act, particularly the third proviso to sub-section (2), which allows the owner of a conveyance used for hire to pay a fine in lieu of confiscation equal to the tax payable on the goods transported. The petitioner argued that even if confiscation is ordered, only a fine would be required to be paid.

Issue 3: An ad-interim relief was granted for the release of the truck upon payment of a specified fine as proposed in the notice issued under Section 130 of the Act. The amount paid was treated as a deposit pending the final outcome of the proceedings, with the petitioner retaining the right to challenge any adverse order.

Issue 4: The Court noted uncertainty regarding the final order of confiscation under Section 130 of the Act. It clarified that if a final order is passed, the petitioner can appeal under Section 107 of the Act. Success in the appeal would entitle the petitioner to a refund of the deposited amount. The writ application was disposed of with these observations, without expressing any opinion on the merits of the case.

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