2019 (2) TMI 1286 - HC - GST

Release of detained goods alongwith vehicle - submission of petitioner is that petitioner has already paid the required tax for the goods which were being transported. In fact more tax amount has been deposited - Held that - As per Rule 140, in case the owner of the goods furnishes the security in the form of Bank Guarantee equivalent to the amount of applicable tax, interest and penalty payable, the authorities can consider the release of the goods and vehicle. The writ petition is disposed of with the observation that petitioner shall furnish the security in the form of Bank Guarantee before the authority concerned, the concerned authority, thereafter may consider the release of of the goods and the vehicle and pass appropriate orders expeditiously say within a period of ten days thereafter.

Summary

Issues involved: Challenge to detention order and consequential notice, payment of tax for goods, seizure of goods, submission of Bank Guarantee for release of goods and vehicle.

The judgment by the Allahabad High Court pertains to a writ petition challenging a detention order and consequential notice issued by the opposite party. The petitioner claimed to have paid the required tax for the goods being transported, stating that more tax than required had been deposited. The petitioner argued that the authorities had seized the goods and vehicle without proper application of mind, mentioning that an e-way bill was not needed as the goods were valued below a certain amount. However, the Standing Counsel contended that the tax had not been paid for the Tobacco bags, only for the Pan Masala. The Standing Counsel further pointed out discrepancies in the quantity of goods mentioned in the seizure memo compared to the tax invoice, and highlighted that the assessment order was passed under Section 129. The Standing Counsel suggested that the petitioner could secure the release of goods and the vehicle by submitting a Bank Guarantee for the applicable tax, interest, and penalty. The petitioner agreed to provide the Bank Guarantee, following which the court directed the opposite parties to release the goods and vehicle upon submission of the Bank Guarantee. The court referred to Rule 140, which allows for the release of goods upon furnishing security in the form of a Bank Guarantee equivalent to the amount of applicable tax, interest, and penalty. The court disposed of the writ petition with the condition that the petitioner must furnish the Bank Guarantee as required, after which the concerned authority should release the goods and vehicle promptly, preferably within ten days. The judgment also granted the petitioner the right to challenge any subsequent order before the appropriate forum if aggrieved.