2018 (12) TMI 765 - HC - GST

Detention of goods and vehicle - Section 129 of the GST Act - Held that - The respondent authorities are directed to release the petitioner s goods and vehicle on his furnishing Bank Guarantee for tax and penalty found due and a bond for the value of goods in the form as prescribed under Rule 140(1) of the CGST Rules - petition disposed off.

Summary

Issues:
Detention of goods under Section 129 of the GST Act; Petitioner seeking to quash proceedings; Applicability of previous judgment in a similar case.

Analysis:
The judgment by the High Court of Kerala pertains to a case involving the detention of goods belonging to a private limited company, which is an assessee under the GST Act, while being transported from Tirunelveli to Kerala. The goods and the vehicle carrying them were detained by the 1st respondent based on proceedings under Sections 129 of the GST Act, specifically Exts.P3 to P5.

In the writ petition, the petitioner requested the court to quash the aforementioned proceedings issued by the 1st respondent through a writ of certiorari or any other suitable writ or order. Additionally, the petitioner sought other incidental reliefs, including the costs of the proceedings.

The judgment references a previous case, Renji Lal Damodaran Vs. State Tax Officer, where a similar issue was addressed by the Division Bench of the Court on August 6, 2018, in W.A.No.1640/2018. The court, applying the ratio of the aforementioned judgment, directed the respondent authorities to release the petitioner's goods and vehicle upon the petitioner furnishing a Bank Guarantee for the tax and penalty amount due, along with a bond for the value of the goods as prescribed under Rule 140(1) of the CGST Rules.

Conclusively, the court disposed of the writ petition with the direction for the release of the goods and vehicle upon compliance with the specified conditions, in line with the precedent set by the earlier judgment in a similar case.