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Applicant allowed to furnish bank guarantee under Section 129(1)(c) CGST within one week for release of detained goods and vehicle HC permitted the applicant to furnish a bank guarantee equivalent to the disputed penalty under Section 129(1)(c) of the CGST Act within one week of ...
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Applicant allowed to furnish bank guarantee under Section 129(1)(c) CGST within one week for release of detained goods and vehicle
HC permitted the applicant to furnish a bank guarantee equivalent to the disputed penalty under Section 129(1)(c) of the CGST Act within one week of receipt of the order together with an application/representation. Upon presentation of the bank guarantee and application, the respondents are directed to release the detained goods and conveyance within one week. The petition is disposed of.
Issues: 1. Issuance of a Writ of Mandamus directing acceptance of bank guarantee for disputed penalty amount. 2. Detention of goods imported by the petitioner. 3. Confirmation of penalty under Section 129(1)(a) of the CGST Act, 2017. 4. Request for release of goods by furnishing a bank guarantee. 5. Delay in passing an order on the petitioner's representation. 6. Court's direction on accepting the bank guarantee and releasing the detained goods.
Analysis: 1. The petitioner, a leading paint manufacturer, imported goods and faced detention by the second respondent, leading to a penalty under Section 129(1)(a) of the CGST Act, 2017. The petitioner challenged the detention order through Writ Petitions, seeking release of the goods bearing a specific registration number. The court directed the petitioner to raise all points before the adjudicating authority and ordered the respondents to decide within two weeks after a hearing.
2. Following the detention, the petitioner objected to the detention and later made a representation requesting the release of goods upon furnishing a bank guarantee equivalent to the penalty amount. Despite the representation, the first respondent confirmed the penalty. The petitioner, aggrieved by the delay in response, filed the current Writ Petition seeking relief.
3. The petitioner's counsel argued for the acceptance of a bank guarantee in accordance with Section 129(1)(c) of the CGST Act, 2017, to secure the disputed penalty amount and release the detained goods promptly. The Additional Government Pleader representing the respondents agreed to release the goods upon receipt of the bank guarantee and the petitioner's representation.
4. The court, considering the submissions, permitted the petitioner to provide the bank guarantee within a week of receiving the court's order. Upon submission of the bank guarantee and application, the respondents were directed to release the detained goods to the petitioner within a week thereafter. The court disposed of the Writ Petition with no costs, emphasizing the fulfillment of the directed actions for the release of goods.
This judgment highlights the legal process involved in challenging detention orders, confirming penalties under tax laws, and seeking relief through the issuance of a Writ of Mandamus for the release of goods upon furnishing a bank guarantee as per statutory provisions.
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