2023 (7) TMI 94 - HC - GST

Judicial Review Upholds Goods Seizure Challenge, Mandates Penalty Deposit and Bond for Conditional Release Under Section 130

M/s. Ravi Trading Co. Versus Deputy Commissioner Of State Tax, Enforcement, DIV 10

HC examined the legality of a GST authority's order under section 130 of the Central GST Act. The court directed release of seized goods and vehicle, ... Seizure of goods alongwith conveyance - section 130 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- In the facts and circumstances of the case, by way of interim relief, it is directed that the goods of the petitioner as well as vehicle bearing registration MH-50-2399, shall be released provided the petitioner complies with the following conditions, (i) The petitioner shall deposit with the competent authority of the respondents, total amount of penalty of Rs. 93,750/-, the tax is not assessed by the authorities. (ii) Towards fine in lieu of confiscation of goods, the petitioner shall furnish Bond of amounting to Rs.19,68,750/-. (iii) The petitioner shall further deposit the amount of Rs. 93,750/- towards fine in lieu of confiscation of conveyance. Upon compliance of the aforesaid conditions, the goods and the vehicle both shall be released by the authorities. Non compliance of any of the aforesaid conditions, shall render the interim relief granted herein above, liable to be vacated - Petition disposed off. Issues involved:The issues involved in the judgment are the legality of the order passed under section 130 of the Central Goods and Services Tax Act, 2017, and the request for release of seized goods and conveyance.Issue 1 - Legality of order under section 130:The petitioner sought to set aside the order dated 09.04.2023 passed under section 130 of the Act, contending that the authorities intercepted the goods in transit and confiscated them under section 129 before passing the order under section 130. It was argued that the exercise of powers under section 129 without availing the petitioner the benefits of release of goods under that section could be considered without jurisdiction.Issue 2 - Request for release of goods and conveyance:The petitioner requested the release of the goods and conveyance with registration No. MH-50-2399, which were seized by GST authorities during transit. The petitioner prayed for interim relief, relying on previous court orders involving similar circumstances.In the judgment, the court directed the release of the goods and vehicle upon compliance with specific conditions. The petitioner was required to deposit a total penalty amount of Rs. 93,750, furnish a bond of Rs. 19,68,750 for fine in lieu of confiscation of goods, and deposit Rs. 93,750 for fine in lieu of confiscation of the conveyance. Non-compliance with these conditions would render the interim relief liable to be vacated, and direct service was permitted for the petition to be listed with a specific Special Civil Application.