TaxTMI 
TaxTMI 
2019 (4) TMI 1448
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....th the consent of the learned advocates for the respective parties, the matter was taken up for final hearing. 3. By this petition under Article 226 of the Constitution of India, the petitioners have challenged the demand order dated 2.4.2019 passed by the second respondent State Tax Officer, (2), Mobile Squad-2, Enforcement-7, Surat, and seeks a direction to the respondents to forthwith release the goods with Truck No.MH-43-U-8620 detained and seized in exercise of powers under sections 129 and 130 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act) and other related statutes. 4. Shortly stated the case of the petitioners is that the first petitioner is engaged in import and sale of dietary food p....
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.... case of the petitioners that the transporter had duly produced all documents relating to the goods, including the four bills of entry for home consumption evidencing payment of IGST on the transaction. The truck and the goods were detained by the second respondent on the ground that Part-B of the E-way bills was not generated. Thereafter an order dated 27.3.2019 issued for physical verification in FORM GST MOV-02 and an order dated 27.3.2019 for detention of goods and vehicle in FORM GST MOV-06 were served upon the transporter of the goods. It is the case of the petitioners that upon being informed about the detention, the petitioners immediately generated Part-B of the E-way bills in respect of the transactions and approached the second r....
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....s would be initiated. Being aggrieved, the petitioners have filed the present petition. 6. Mr. Kuntal Parikh, learned advocate for the petitioners, invited the attention of the court to the provisions of section 129(1) of the CGST Act to submit that clause (a) thereof provides for release of goods that have been detained or seized on payment of the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty. It was submitted that in the facts of the present case since there was no su....
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.... goods so seized under sub-section (2) shall be released on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. 6.2 The attention of the court was further invited to the written submissions made by the petitioner on 29.3.2019 made to the second respondent. 6.3 Referring to the impugned order, it was pointed that the same is totally a non-reasoned order and that the second respondent has not considered the submissions advanced by the petitioners that the petitioners had already paid IGST on the goods in question and hence, the question of again paying IGST amount of Rs. 5,93,5....
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....d the quantum of tax payable by the petitioners. A perusal of the impugned order dated 2.4.2019 passed by the second respondent in FORM GST MOV-09 whereby tax and penalty have been demanded, reveals that the basis for computing the additional tax is the IGST paid by the petitioners. Moreover, in the impugned order there is not even a whisper as regards the submissions advanced on behalf of the petitioners, nor have the same been dealt with in the body of the order. No reasons have been assigned by the second respondent for the purpose of holding the petitioner liable to payment of tax and penalty despite the fact that IGST had already been paid on such transaction and the goods were being moved from the customs warehouse to the petitioner&#....
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.... to the following extent: The impugned order dated 2.4.2019 passed by the second respondent (Annexure-H to the petition) is hereby quashed and set aside. The matter is restored to the file of the second respondent who shall decide the same afresh in accordance with law after giving an opportunity of hearing to the petitioner. It need not be stated that the second respondent shall pass a speaking order, dealing with all the contentions raised by the petitioners. In the meanwhile, as the goods in question are perishable goods, for the purpose of grant of immediate relief to the petitioners, the goods in question together with truck No.MH-43-U-8620 are ordered to be released, subject to the petitioners furnishing security by way of bond of a....