2022 (2) TMI 1250 - HC - GST

Violation of principles of natural justice - goods detained without giving any opportunity of hearing to the petitioners - Section 129 of the West Bengal Goods and Service Tax Act, 2017 - HELD THAT - Taking into consideration that the petitioners claiming to be the owners of the goods in question, which has been detained, are ready and agreeable to pay the applicable tax and penalty as per amended provision of Section 129 of the said Act, it is deemed fit that the detained goods in question shall be released on making payment as per amended provision of Section 129(1) of the said Act and which is to be made by the petitioners within seven days from date and on receipt of such payment, authorities concerned shall release the detained goods in question within 72 hours from receipt of such payment and in the interest of justice and considering the fact that the petitioners being the owner of the detained goods in question could not get effective opportunity of hearing before passing of the impugned order on 29th January, 2022, the said impugned order dated 29th January, 2022 is set aside. Matter remanded to the authority concerned to consider afresh and pass a reasoned and speaking order in accordance with law after giving an opportunity of hearing to the petitioners or its authorised representative - petition allowed by way of remand.

Summary

Issues: Challenge to impugned order dated 29th January, 2022 under Section 129 of West Bengal Goods and Service Tax Act, 2017.

The High Court of Calcutta, in the case of WPA 297 of 2022, dealt with a writ petition challenging the impugned order passed by the Deputy Commissioner of Revenue, State Tax, Bureau of Investigation, North Bengal, Alipurduar Zone on 29th January, 2022. The petitioners contended that the impugned order, which detained goods without providing them an opportunity of hearing as required under Section 129 of the West Bengal Goods and Service Tax Act, 2017, was unlawful. The petitioners expressed their willingness to pay the tax and penalty as per the provisions of Section 129 of the Act.

Upon considering the submissions of the parties and acknowledging that the petitioners claimed ownership of the detained goods and were prepared to pay the applicable tax and penalty, the Court ordered the release of the goods upon payment in accordance with the amended provision of Section 129(1) of the Act. The authorities were directed to release the goods within 72 hours of receiving the payment, emphasizing the importance of justice. The impugned order of 29th January, 2022 was set aside due to the petitioners being denied a hearing, and the matter was remanded to the concerned authority for a fresh decision after providing an opportunity of hearing to the petitioners or their authorized representative. The Court expected the fresh order to be passed promptly.

It was clarified by the Court that the setting aside of the impugned order was solely based on the violation of the principle of natural justice, as the petitioners were not granted a hearing, and not on the merits of the order itself. With these directions and observations, the writ petition, WPA 297 of 2022, was disposed of by the High Court of Calcutta.

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