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2019 (6) TMI 810 - HC - GSTInterpretation of statute - Sections 129 and 130 of the GST Act - Release of seized goods alongwith the vehicle - HELD THAT - Ultimately if the liability is fixed in accordance with the stance of the Department then an amount of 1.36 lakh would be payable. This would be an approximate figure. We propose to pass an order directing the officials of the Department to release the Trailor as well as the goods at the earliest on the condition that an amount of 1.50 lakh is deposited by the writ applicant with the concerned Department by dayaftertomorrow i.e. 12.06.2019. Once the amount is deposited the officials shall immediately release the vehicle and the goods. The vehicle bearing registration No.HR38Q7370 as well as the goods i.e. plywood detained/seized under the purported exercise of powers under Sections 129 and 130 of the CGST Act shall be released immediately upon deposit of 1.50 lakh with the concerned Department. Post this matter for further hearing on 19.06.2019.
Issues involved:
Interpretation of Sections 129 and 130 of the GST Act; Release of goods and vehicle seized by GST Department; Compliance with legal procedures in detention and confiscation of goods. Analysis: 1. The writ applicant, engaged in plywood business, ordered goods from a manufacturer in Haryana. The goods were intercepted by GST Department officers during transit, alleging undervaluation. The Department claimed the goods were worth more than the invoiced amount. 2. The Assistant Government Pleader stated the applicant owes around ?2,15,000 in GST, with ?78,000 already paid. Proceedings under Section 130 of the GST Act were initiated. 3. The main issue concerns the interpretation of Sections 129 and 130 of the GST Act. An interim order was proposed for the release of the seized vehicle and goods pending further proceedings. 4. A coordinate Bench order highlighted the legal procedure under Sections 129 and 130 of the GST Act for detaining goods in transit. Non-compliance with Section 129 procedures was noted in the show cause notice issued under Section 130. 5. The Court ordered the immediate release of the vehicle and goods upon depositing ?1.50 lakh with the concerned Department. The matter was scheduled for further hearing to be assisted by the Advocate General. This judgment addresses the legal aspects of detention and confiscation of goods under the GST Act, emphasizing compliance with procedural requirements and the grant of interim relief. The Court's decision to release the seized vehicle and goods upon depositing a specified amount reflects a balanced approach pending final resolution of the case.
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