2024 (11) TMI 577 - HC - GST

Court Orders Tax & Penalty Calculation for Seized Goods; Release Upon Payment; Petitioner Can Reply to Show Cause Notice.

Chelaram Versus State of Karnataka Bengaluru, The Joint Commissioner of Commercial Taxes (Enforcement) Kalaburagi, Asst. Commissioner of Commercial Taxes (Enforcement), Commercial Tax Officer (Enforcement-I) Bidar

The HC disposed of the Writ Petition challenging the show cause notice under FORM GST MOV-07. The Court directed the third respondent to calculate the ... Challenge to SCN in FORM GST MOV-07 - petitioner is ready to pay the applicable tax and penalty under section 129(1)(a) of the CGST Act, 2017 - HELD THAT:- In view of the fact that the petitioner has come forward to pay the applicable tax and penalty under section 129(1)(a) of the CGST Act, 2017, the third respondent is hereby directed to calculate the applicable tax and penalty under Section 129(1)(a) of the CGST Act, 2017 within three days from the date of receipt of the certified copy of this order. Upon receipt of the applicable tax and penalty, the Assistant Commissioner of Commercial Taxes (Enforcement), Bidar is directed to release the seized goods and the vehicle bearing Registration No. KA-07-8529 - It is made clear that payment of applicable tax and penalty under section 129(1)(a) of the CGST Act, 2017 is subject to the outcome of the final order that would be passed by the Assistant Commissioner of Commercial Taxes (Enforcement), Bidar on impugned notice. Petition disposed off. Issues:Challenge to show cause notice under FORM GST MOV-07 for calculation of applicable tax and penalty under CGST Act, 2017.Analysis:The Writ Petition sought to quash the show cause notice in FORM GST MOV-07 dated 20-2-2024 issued by the Assistant Commissioner of Commercial Taxes (Enforcement), Bidar. The petitioner, as the owner of goods carried in a vehicle intercepted by the respondents, had submitted necessary documents for verification and expressed readiness to pay applicable tax and penalty under Section 129(1)(a) of the CGST Act, 2017. The Assistant Commissioner issued the show cause notice under Section 129(1)(b) of the CGST Act, 2017, disregarding the petitioner's submissions.The petitioner contended that he had already submitted the required documents for verification and was willing to pay the tax and penalty as per Section 129(1)(a) of the CGST Act, 2017, thus urging for the release of the seized goods and vehicle. The Assistant Commissioner, on the other hand, defended the calculation of tax and penalty under Section 129(1)(b) of the CGST Act, 2017, stating that only a show cause notice had been issued. The Court noted the petitioner's willingness to pay under Section 129(1)(a) and directed the third respondent to calculate the applicable tax and penalty under the same section within three days.The Court ordered the release of the seized goods and vehicle upon payment of the applicable tax and penalty under Section 129(1)(a) of the CGST Act, 2017. It emphasized that the Writ Petition was against the show cause notice, allowing the petitioner to file a reply to it. The Assistant Commissioner was directed to consider the reply and make decisions in accordance with the CGST Act, 2017. The payment was made subject to the final order by the Assistant Commissioner, without expressing any opinion on the case's merits.In conclusion, the Writ Petition was disposed of, with directions for the calculation and payment of applicable tax and penalty under Section 129(1)(a) and subsequent release of the seized goods and vehicle, pending further actions by the Assistant Commissioner in response to the show cause notice.