2020 (9) TMI 1272 - HC - GST

Detention of goods - etitioner has submitted that apart from the tax and penalty huge amount of Fine under Section 130 has also been imposed to the tune of Rs. 19,37,529/- - HELD THAT - The matter requires consideration - List this petition in the 1st week of November, 2020. The goods seized and vehicle detained on 20-8-2019 are directed to be released in favour of the petitioner forthwith on payment of Rs. 20 lacs in cash and on furnishing of security in the shape of indemnity bond for the balance amount (fine). It is made clear that the Mobile Squad Authority/assessing authority or the competent authority will release goods immediately without any delay.

Summary

Issues:
Interception of goods in transit, show cause notice, seizure order, imposition of tax, penalty, and fine under Section 130.

Interception of Goods in Transit:
The judgment revolves around the interception of goods while in transit from Haryana to Madhya Pradesh by the Mobile Squad Unit-4 in Mathura. A detention memo was issued, followed by a show cause notice served to the petitioner. The petitioner submitted a reply, but the Mobile Squad Authority was not satisfied, leading to the passing of a seizure order imposing tax and penalty amounting to Rs. 9.43 lacs. Furthermore, a significant fine under Section 130 of Rs. 19,37,529/ was also imposed. The petitioner's counsel highlighted the imposition of tax, penalty, and the substantial fine in addition to the seizure.

Consideration of the Matter:
After hearing the arguments from both the petitioner's counsel and the Learned Standing Counsel, the judge opined that the matter necessitates further consideration. Consequently, the court allowed three weeks for the filing of a counter affidavit by the Standing Counsel, followed by an additional two weeks for the petitioner to file a rejoinder affidavit. The petition was listed for the 1st week of November 2020.

Release of Seized Goods:
In the judgment, it was ordered that the goods seized and the detained vehicle from the incident on 20-8-2019 be released in favor of the petitioner immediately. This release was subject to the petitioner making a cash payment of Rs. 20 lacs and providing security in the form of an indemnity bond for the remaining fine amount. It was explicitly stated that the goods should be released promptly without any delay by the Mobile Squad Authority or the competent authority.