2020 (1) TMI 514 - HC - GST

Release of detained goods alongwith vehicle - principles of natural justice - recall of order passed under Section 130 of the Act - HELD THAT - The goods and the conveyance came to be detained and seized way back on 19th July, 2019. Till this date, the goods and the conveyance is in the possession of the GST Authorities - As we are directing the authorities to initiate fresh proceedings with regard to confiscation, we direct the writ applicants to deposit an amount of ₹ 4,02,500/- towards the tax and penalty as determined under Section 129 of the Act - On deposit of such amount, the goods and the conveyance shall be released forthwith subject to the final outcome of the confiscation proceedings. The amount of ₹ 4,02,500/- towards the tax and penalty has been determined while passing the order of confiscation under Section 130. Let this amount be deposited by the writ applicants, and subject to deposit, there shall be release of the goods and the conveyance - Application disposed off.

Summary

Issues:
1. Writ application under Article 226 for quashing an order and directing release of goods and vehicle without security.
2. Recalling impugned order under Section 130 and initiating fresh proceedings.
3. Directing deposit of tax and penalty for release of goods and conveyance.

Analysis:
1. The writ applicants sought relief through a writ application under Article 226, requesting the quashing of an order and the release of goods and a vehicle without demanding any security. The Court noted a recent decision and suggested recalling the impugned order and deciding the matter afresh in line with legal principles. The learned AGP, after obtaining necessary instructions, stated that the impugned order would be recalled, and fresh proceedings initiated in accordance with the law and principles laid down by the Court in the recent decision.

2. The Court acknowledged the statement made by the learned AGP and decided not to adjudicate the application on merits. The Court directed that the exercise be undertaken as per the statement made by the AGP at the earliest. Noting that the goods and conveyance had been detained and seized earlier, the Court directed the writ applicants to deposit a specified amount towards tax and penalty as determined under Section 129 of the Act for the release of goods and conveyance pending the final outcome of confiscation proceedings.

3. The Court clarified that the specified amount towards tax and penalty had been determined during the order of confiscation under Section 130. The writ applicants were directed to deposit this amount, and upon such deposit, the goods and conveyance would be released. The Court disposed of the writ application with these directions, permitting direct service.