2019 (9) TMI 1248 - HC - GST

Release of detained goods - section 130 of the Central Goods and Services Tax Act, 2017 - HELD THAT - By way of ad-interim relief, the second respondent is directed to release the vehicle of the petitioner being truck No.GJ-03-AX-5727 upon the petitioner paying a fine of ₹ 62,024/- as proposed in the notice dated 12.7.2019 issued under section 130 of the Act in lieu of confiscation of conveyance. Issue Notice returnable on 10th October, 2019.

Summary

Issues: Interpretation of section 130 of the Central Goods and Services Tax Act, 2017 regarding the confiscation of conveyance and imposition of fines.

In the judgment delivered by the Gujarat High Court, the petitioner's advocate argued that under section 130 of the CGST Act, the owner of a conveyance used for hire should have the option to pay a fine equal to the tax payable on the goods being transported instead of facing confiscation. The advocate highlighted the third proviso to sub-section (2) of the Act to support this argument. On the other hand, the Assistant Government Pleader disputed this position by referring to the second proviso to sub-section (2) and sub-section (3) of section 130. The court, after considering the submissions from both sides, issued a notice returnable on a specified date. Additionally, as an ad-interim relief measure, the court directed the second respondent to release the petitioner's vehicle upon payment of a fine of ?62,024 as proposed in the notice issued under section 130 of the Act. This directive was subject to the final outcome of the petition and the proceedings under section 130 of the CGST Act. The court specified that the amount paid would be treated as a deposit by the petitioner pending the final outcome, with the right to challenge any adverse order before a higher authority. The petitioner was also required to file an undertaking with the court in this regard. Direct service of the order was permitted for compliance.