High Court Allows Conditional Release of Goods and Vehicle in GST Case, Mandating Tax, Penalty, and Bond Deposit

The HC examined a GST-related case involving goods and vehicle confiscation under Sections 129 and 130 of CGST Act, 2017. The court directed release of goods and conveyance upon fulfilling specific conditions, including depositing tax (Rs. 3,21,230), penalty (Rs. 3,21,230), and furnishing a bond for fine (Rs. 64,24,600). The ruling balanced regulatory compliance with procedural fairness, providing conditional interim relief to the petitioner.

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Issues:
1. Quashing of notice confiscating goods and conveyance
2. Interplay of Sections 129 and 130 of CGST Act, 2017
3. Imposition of penalty, fine, and tax
4. Consideration of interim relief conditions

Quashing of Notice Confiscating Goods and Conveyance:
The petitioner sought to quash a notice dated 19.09.2022 in FORM GST MOV-10, which led to the confiscation and detention of goods and conveyance. The goods, being transported to the buyer, were confiscated when the vehicle was intercepted by authorities. The petitioner requested the release of the goods and vehicle under sections 129 and 130 of the Goods and Services Tax Act, 2017. The court directed the release of goods and conveyance upon fulfillment of specified conditions.

Interplay of Sections 129 and 130 of CGST Act, 2017:
The petition raised the issue of the interaction and application of Section 129 and Section 130 of the Central Goods and Services Tax Act, 2017. The nature of powers exercisable under these provisions was deliberated upon. The court considered this aspect in the context of the petition and the related case, emphasizing the need for compliance with the legal framework.

Imposition of Penalty, Fine, and Tax:
The impugned order demanded a penalty of Rs. 3,21,230, a fine of Rs. 64,24,600 in lieu of confiscation of goods, and a tax amounting to Rs. 3,21,230. The court took note of these financial obligations while assessing the case and determining the conditions for the release of goods and conveyance.

Consideration of Interim Relief Conditions:
Regarding the interim relief sought by the petitioner, the court directed the release of confiscated goods and conveyance subject to specific conditions. These conditions included the deposit of tax and penalty amounts, as well as the furnishing of a bond towards the fine. Compliance with these conditions would result in the release of goods and conveyance by the authorities, ensuring adherence to the legal requirements and procedural norms.

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