2026 (3) TMI 299 - HC - GST

Statutory appellate remedy affirmed for seizure, prohibition and cancellation; release application must be decided within a short timeframe.

Orders of seizure, prohibition and cancellation under the Central Goods and Services Tax framework attract the statutory appellate remedy and are ... Appealability of cancellation of GST registration - appealability of seizure and prohibition orders - seizure GST INS-02 and Order of prohibition GST INS-03 under Rule 139(4) of the Rules and initiated proceedings under Section 130 of the GST Act, 2017. Appealability of cancellation of GST registration - HELD THAT:- The Court examined the impugned cancellation order and concluded that it falls within the class of orders against which statutory appeal remedies are available. Consequently, the petitioner has an adequate alternative remedy in the prescribed appellate forum and the writ remedy is not the sole recourse for challenging the cancellation. The observation identifies the specific appellate authority to which the remedy lies. [Paras 5] Cancellation of registration is appealable to the Deputy Commissioner, State Tax, Circle Rewa. Appealability of seizure and prohibition orders - HELD THAT: - The Court found that the orders of seizure and prohibition issued during the search proceedings are within the category of orders against which appeals are maintainable under the statutory scheme. This determination places those orders within the appellate mechanism provided under the GST law rather than as matters to be finally resolved in writ proceedings. [Paras 5] Orders of seizure and prohibition are appealable. The pending application for release of goods seized during search was directed to be decided by the competent authority within a specified short period. - Competent authority to decide the application for release of seized goods in accordance with law within thirty days from receipt of certified copy of this order. Final Conclusion: The writ petition was disposed of with the Court observing that the cancellation, seizure and prohibition orders are appealable to the statutory appellate forum; a pending application for release of seized goods was directed to be decided by the competent authority within thirty days, and the petitioner was left to pursue remedies available under the law. Issues: (i) Whether the orders of seizure, prohibition and cancellation passed by the revenue authorities are appealable; (ii) Whether the pending application for release of goods confiscated at the time of search requires interim or expeditious adjudication by the competent authority.Issue (i): Whether the orders of seizure, prohibition and cancellation are appealable.Analysis: The Court examined statutory scheme under the Central Goods and Services Tax Act, 2017 and the Rules framed thereunder, and noted the nature of the impugned orders dated 25.12.2025 (seizure and prohibition) and 20.01.2026 (cancellation of registration). The Court observed that such orders attract the statutory appellate remedy provided under the GST law and therefore are amenable to departmental appeal proceedings before the prescribed appellate authority.Conclusion: The Court held that the orders of seizure, prohibition and cancellation are appealable and the petitioner may avail the statutory remedy of appeal to the appropriate authority.Issue (ii): Whether the pending application for release of goods confiscated during search should be decided forthwith.Analysis: The Court noted the existence of an application for release of goods filed on 20.01.2026 before the competent authority and found it pending. In the interest of expeditious adjudication and protection of statutory rights, the Court directed that the application be decided in accordance with law within a specified short timeframe.Conclusion: The Court directed the competent authority to decide the application for release of goods within thirty days from receipt of certified copy of the order.Final Conclusion: The writ petition was disposed of with observation that the impugned orders are appealable and with a direction for expeditious disposal of the pending application for release of goods; the petitioner is left to pursue statutory remedies.Ratio Decidendi: Orders of seizure, prohibition and cancellation passed under the Central Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Rules, 2017 are subject to the statutory appellate remedy, and pending applications for release of goods seized during search must be decided by the competent authority within a reasonable and expeditious timeframe.