9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1050 - HC - GSTDetention of goods alongwith vehicle - grievance of the petitioner is that the petitioner s goods in the nature of TMT Bars which were being transported from one place within the State to another, were illegally detained by the authorities along with the transport vehicle in which the goods were being transported - illegal demand of tax and penalty - HELD THAT - The determination of payable tax and interest in terms of clause (a) or (b) of sub-section (1) upon payment of which the goods or the transport vehicle would be released or upon furnishing security in terms of clause (c), has to be after a notice to the person concerned and granting an opportunity of being heard in this respect as provided in sub-sections (3) and (4) of Section 129 of the said Act. In the present case, no such steps were taken. The State authority straightway passed the order dated 25.10.2018 which is titled as Order of Demand of Tax and Penalty . This order thus clearly breaches the requirement of sub-sections (3) and (4) of Section 129 of the said Act - In view of such facts despite availability of appellate remedy, present petition should be entertained. The said order is, therefore, quashed. In fact of the case, since the petitioner has already deposited the amount indicated in the said order dated 25.10.2018 and the goods along with the transport vehicle are already released - petition disposed off.
Issues:
Challenge to detention and seizure of goods by tax authorities without proper hearing and demand of tax with penalty without opportunity of being heard. Detailed Analysis: 1. Challenge to Detention and Seizure of Goods: The petitioner challenged the action of the tax authorities for detaining the goods, specifically TMT Bars, being transported within the State. The petitioner alleged that the goods were detained illegally without proper authority and were released only after paying an illegal tax demand with penalty raised by the respondents. 2. Legal Background and Facts: The petitioner, a registered dealer under the GST Act, had purchased TMT Bars and was transporting them with all necessary documents. The authorities intercepted the transport vehicle, seized the goods, and raised a tax demand with penalty, compelling the petitioner to pay to release the goods. 3. Unlawful Action by State Authorities: The petitioner contended that the actions of the state authorities were illegal and unlawful as the goods were properly documented and taxed. The authorities demanded tax with penalty without providing an opportunity for the petitioner to be heard. 4. Judicial Analysis of Legal Provisions: The court analyzed Sections 68 and 129 of the Tripura State Goods and Services Tax Act, 2017. Section 68 deals with the inspection of goods in movement, while Section 129 pertains to detention, seizure, and release of goods in transit. The court highlighted the conditions and procedures outlined in these sections for detaining and releasing goods. 5. Lack of Opportunity of Being Heard: The court emphasized that before confirming a tax demand and imposing a penalty, the petitioner must be given an opportunity to be heard. The authorities acted unlawfully by demanding full tax with penalty without granting the petitioner a hearing, which is a violation of the statutory provisions. 6. Court's Decision and Relief Granted: The court quashed the order of demand of tax and penalty dated 25.10.2018 due to the breach of procedural requirements under Section 129. The court directed the authorities to provide a notice of hearing to the petitioner, allowing them to respond within a specified period. The competent authority was instructed to pass a speaking order within four months, and any amount deposited by the petitioner would be adjusted accordingly. 7. Conclusion: The petition was disposed of with the court providing relief to the petitioner by ensuring proper procedural compliance and granting an opportunity to contest the tax demand with penalty. The judgment highlighted the importance of following due process and providing a fair hearing before imposing tax liabilities and penalties.
|
