Vehicle Detention Under GST Act Upheld: Amended Section 129 Provisions Cannot Override Original Statutory Basis of Proceedings

HC rejected petitioner's writ petition challenging vehicle detention under GST Act. Court upheld State's argument that amended Section 129 provision cannot be applied retrospectively. The petitioner's application for vehicle release was denied, with the court finding the detention justified based on original statutory provisions at the time of initial proceedings.

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Issues Involved:
1. Rejection of application for releasing a vehicle under Section 129 of the GST Act based on the amended provision.

Summary:
The petitioner filed a writ petition aggrieved by the rejection of their application for releasing a truck under supurdnama. The petitioner sought various reliefs including directing the authorities to release the vehicle, pay legal costs, expenses, and damages. The petitioner argued that the rejection was arbitrary and discriminatory, violating Article 14 of the Constitution, as the authority did not consider the provisions of Section 129 of the GST Act.

The State contended that the amended provision of Section 129 of the GST Act, effective from January 1, 2022, could not be applied retrospectively to the petitioner's case. The State argued that the petitioner's liability to pay penalty was Rs. 34,65,144, and the detention of the vehicle was justified under the Act to prevent tax evasion. Notices and demand orders were served to the petitioner, who did not respond or pay the instructed amount. The State maintained that the amended provision could not be availed by the petitioner as the proceedings were initiated before its enactment.

After considering the arguments and pleadings, the Court found merit in the State's contention that the amended provision of Section 129 of the GST Act could not be applied to the petitioner's case. Consequently, the Court rejected the petitioner's prayer for the release of the vehicle and dismissed the petition.

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