2024 (5) TMI 1216 - HC - GST

Judicial Review Permits Conditional Release of Confiscated Goods Under GST, Mandating Specific Financial and Identification Guarantees

HC of Jharkhand allowed a civil review petition regarding release of confiscated goods under GST Act. The petitioner-Firm was directed to deposit penalty, ... Permission for release of the confiscated goods - condition for release of confiscated goods - pre-deposit under Section 107 of GST Act - HELD THAT:- Under Section 107 of the GST, the assessee is liable to make pre-deposit of 10% of the total value. This position was not considered while granting the interim order. Therefore, on deposit of Rs.2,71,000/- in addition to the penalty and fine amounts, the confiscated goods shall be released on the conditions imposed - the respondents shall not take steps for auctioning the confiscated goods and conveyance till next Friday i.e. 24th May 2024. Petition allowed. Issues involved: Permission for release of confiscated goods u/s 122 of GST Act, pre-deposit under Section 107 of GST Act, conditions for release of confiscated goods.The High Court of Jharkhand allowed the Civil Review Petition seeking permission for the release of confiscated goods u/s 122 of the GST Act. The petitioner-Firm was directed to deposit a sum towards penalty, fine, and value of goods assessed. The Court specified that the petitioner-Firm must make the required deposits and furnish a bank guarantee within a stipulated time frame. The petitioner-Firm, through their counsel, indicated their intention to seek relief limited to the release of confiscated goods and pursue an appeal against the order u/s 130 of the GST Act.Regarding the pre-deposit requirement u/s 107 of the GST Act, the Court noted that the interim order did not consider this aspect. Therefore, the Court directed the petitioner-Firm to make an additional deposit to release the confiscated goods. The release was subject to conditions including furnishing attested photocopy of Aadhar Card, providing a cross-cheque, submitting an affidavit by a legal heir or relative for identification, and refraining from denying the existence of goods upon release and sale.In order to protect the revenue's interest, the Court imposed specific conditions for the release of confiscated goods. The respondents were instructed not to proceed with auctioning the goods and conveyance until a specified date. The Court emphasized that these conditions were necessary to safeguard the revenue's interests.The Civil Review Petition was allowed, and consequently, W.P.(T) No. 6746 of 2023 was allowed to the extent of granting permission for the release of confiscated goods under the specified conditions.