Seizure Challenge Dismissed: Petitioner Must Provide Bond and Security Within 15 Days to Release Goods

The HC rejected the petitioner's challenge to seizure and prohibition orders, finding non-compliance with legal requirements. The court directed the respondents to issue a notice requiring the petitioner to furnish necessary bond and security within 15 days. Upon satisfying the statutory conditions under Section 67(6) of CGST Act, 2017, the seized goods would be provisionally released.

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Issues involved:
Challenge of impugned order of seizure and Prohibition Order, petitioner's business standstill, failure to produce necessary documents, request for release of seized goods, requirement of furnishing bond and security for provisional release.

Challenge of impugned order of seizure and Prohibition Order:
The petitioner challenged the impugned order of seizure in Form GST INS-02 and consequential Prohibition Order in Form GST INS-03 dated 30.05.2023, stating that the business has come to a standstill due to these proceedings.

Failure to produce necessary documents:
Despite directions from the Court to approach the first respondent for release of seized goods, the petitioner failed to submit the required documents such as stock register, purchase and sale bills for the specified period. The respondents highlighted the petitioner's non-compliance with document submission.

Request for release of seized goods:
The petitioner sought the release of the seized goods and was directed to furnish bond and security as per Section 67(6) of the CGST Act, 2017. However, the petitioner did not come forward to provide the necessary security for the release.

Requirement of furnishing bond and security for provisional release:
In order to obtain provisional release of the seized goods, the petitioner was required to furnish bond and security as prescribed by law. The Court directed the respondents to issue a notice to the petitioner for furnishing the required security within a specified timeframe.

Conclusion:
The Court disposed of the writ petition by instructing the respondents to issue a notice to the petitioner for furnishing the necessary security within fifteen days. Upon furnishing the required security, the goods shall be released. The petitioner was directed to comply with the legal provisions regarding security for the release of seized goods.

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