2022 (10) TMI 997 - HC - GST

Petitioner Wins Interim Relief: GST Confiscation Challenge Allowed with Conditional Goods Release under Section 129

The HC allowed the petition challenging GST confiscation proceedings under section 129 of CGST Act. The Court directed release of detained goods and ... Detention and confiscation of goods in transit - release of goods and conveyance on furnishing bond and payment of penalty and fine - interim release pending adjudication - exercise of powers under section 130 of the CGST Act - detention and confiscation under section 129 of the CGST ActInterim release pending adjudication - release of goods and conveyance on furnishing bond and payment of penalty and fine - Release of the petitioner's goods and conveyance detained/confiscated in Form GST MOV-11 pending disposal of the petition subject to conditions. - HELD THAT: - The High Court, noting earlier admitted petitions involving similar controversy and the petitioner's willingness to comply with conditions, directed interim release of the detained/confiscated goods and conveyance pursuant to the order in Form GST MOV-11 dated 24.09.2022. The court recorded that the respondent-State did not dispute the stated facts and granted interim relief on the petitioner furnishing specified security and payments. The release was made conditional on (i) deposit of the penalty on the goods, (ii) deposit of the fine in lieu of confiscation of the conveyance, and (iii) furnishing of a bond to secure the value of the goods; upon compliance the respondent-authority was directed to release the goods and conveyance, and the interim order was to form part of the main matter. The court also permitted direct service on specified respondents and listed the petition. This order grants interlocutory relief only and does not decide the merits of the confiscation proceedings. [Paras 7, 8, 9, 10]Goods and conveyance to be released on deposit of the specified penalty and fine and on furnishing the specified bond; interim release to remain part of the main matter.Final Conclusion: Interim relief granted: upon deposit of the penalty and fine and furnishing of the bond as directed, the respondent-authority shall release the petitioner's goods and conveyance detained/confiscated under the impugned order; petition listed for further hearing. Issues:Petition for direction to conclude proceedings under section 129 of CGST Act, quash confiscation proceedings, interim relief for stay of implementation of order in FORM GST MOV-11.Analysis:The petition sought direction for concluding proceedings under section 129 of the CGST Act and to quash the confiscation proceedings along with the order of confiscation in FORM GST MOV-11. The petitioner requested interim relief to stay the implementation of the order in FORM GST MOV-11 until the final disposal of the petition. The petitioner, through learned advocate Mr. Vakhariya, highlighted the admission of similar matters by the Court, indicating a controversy regarding the exercise of powers under section 130 of the CGST Act. It was mentioned that interim relief was granted in another similar matter to release goods and conveyance upon certain conditions. The petitioner expressed willingness to abide by similar conditions.The learned Assistant Government Pleader, Mr. Parikh, did not dispute the facts presented by Mr. Vakhariya. Additionally, the petitioner filed a separate Civil Application seeking the release of goods and conveyance. Mr. Vakhariya proposed specific conditions for the release of goods and conveyance, including furnishing a bond and depositing penalty and fine amounts. Considering the submissions and facts presented, the Court directed the respondent to release the goods and conveyance of the petitioner that were confiscated and detained as per the order dated 24.09.2022 in FORM GST MOV-11. The release was subject to conditions such as depositing penalty and fine amounts and furnishing a bond. Upon compliance with these conditions, the goods and conveyance were to be released by the respondent-authority, and the order of interim relief was to be part of the main matter.The Civil Application was allowed and disposed of based on the terms mentioned in the judgment. Direct service was permitted to respondent Nos. 3 and 4, and notice was issued in the petition returnable on 24.11.2022, with direct service allowed for respondent Nos. 3 and 4 as well.