2019 (10) TMI 1087 - HC - GST

Release of confiscated goods alongwith the vehicle - section 130 of CGST Act - HELD THAT - Issue rule , returnable on 28th November 2019. By way of interim relief, the second respondent is directed to forthwith release the conveyance together with the goods contained therein.

Summary

Issues involved: Physical verification report discrepancies, market value determination, interim relief for release of conveyance and goods, undertaking for tax liabilities.

Physical verification report discrepancies:
The judgment pertains to a case where discrepancies were found in a physical verification report related to the transportation of goods. The court noted that although a report was prepared, the attached list of goods was missing from the original record. Additionally, another document did not clearly indicate any discrepancies in the goods being transported. The Assistant Government Pleader failed to provide a satisfactory explanation regarding the missing details, leading to uncertainty about the accuracy of the verification process.

Market value determination:
The Assistant Government Pleader presented Annexure-1 to Form GST-MOV-10, indicating the market value of the goods as determined by the concerned officer. However, upon reviewing the original file, the court found a lack of information regarding the basis for arriving at the stated market value. This raised doubts about the transparency and validity of the valuation process, highlighting a potential flaw in the assessment of the goods' worth.

Interim relief for release of conveyance and goods:
In response to the identified discrepancies and uncertainties, the court issued a ruling directing the second respondent to immediately release the conveyance and the goods it contained. This interim relief aimed to address the potential adverse effects of any delays or wrongful withholding of the goods, ensuring prompt action to safeguard the interests of the petitioner pending further proceedings.

Undertaking for tax liabilities:
As a precautionary measure, the court mandated the petitioner to submit an undertaking promising to fulfill any tax, penalty, or fine obligations if held liable in the future. This requirement was intended to secure the government's revenue interests while granting the petitioner the opportunity to challenge any imposed financial liabilities through appropriate legal channels, maintaining a balance between accountability and dispute resolution.

This detailed analysis of the judgment underscores the court's meticulous examination of the discrepancies in the physical verification report, concerns regarding market value determination, the provision of interim relief for the release of goods, and the imposition of an undertaking to address potential tax liabilities, reflecting a comprehensive approach to resolving the legal issues at hand.