2019 (1) TMI 23 - HC - GST

Detention of goods with vehicle - Section 129 of the GST Act - Held that - The petitioner-Company is a dealer with its registration in Tamil Nadu. When it wanted to comply with the statutory demand and get the goods released, the respondent authorities insisted that the petitioner should have a temporary registration, remit the amounts using that registration, and then get the goods released. The petitioner is disinclined to follow that procedure. It wants to remit the amounts using its own Tamil Nadu registration and have the goods released. The Government pleader took instructions from the authorities, and informed the Court that the petitioner s representative can approach the authorities with a request to remit the amounts. They will generate the challan in the petitioner s name using a temporary registration and hand it over to the petitioner s representative. That person, then, can approach the Bank, remit the amount, and produce the proof before the authorities. Thereafter, the authorities will release the goods - petition disposed off.

Summary

Issues:
1. Detention of goods under Section 129 of the GST Act
2. Procedure for release of detained goods
3. Requirement of temporary registration for remittance of amounts

Analysis:
1. The petitioner, an assessee under the GST Act in Tamil Nadu, faced detention of goods by the Assistant State Tax Officer under Section 129 of the GST Act. The petitioner challenged this detention through a writ petition seeking various reliefs, including quashing of the detention order and release of goods. The case was brought before the court for resolution.

2. The Government Pleader highlighted a previous Division Bench judgment in Renji Lal Damodaran v. State Tax Officer, indicating a similar case precedent. However, a peculiar issue arose in this case where the respondent authorities insisted on the petitioner obtaining a temporary registration, remitting amounts through it, and then getting the goods released. The petitioner preferred to use its existing Tamil Nadu registration for remittance and release of goods, leading to a disagreement on the procedure.

3. Following discussions and instructions from the authorities, a practical solution was proposed. The petitioner's representative could approach the authorities to remit the amounts, leading to the generation of a challan in the petitioner's name using a temporary registration. The representative could then remit the amount at the bank, provide proof to the authorities, who would subsequently release the goods. Both parties agreed to this arrangement, and the court disposed of the writ petition based on this agreed-upon resolution.