2020 (1) TMI 631 - HC - GST

Release of seized goods and vehicle - Section 130 of CGST Act - HELD THAT - The impugned order passed under Section 130 of the Act dated 19th July, 2019 shall be recalled and fresh proceedings shall be initiated in accordance with law and a fresh order shall be passed after giving an opportunity of hearing to the writ applicants - The goods and the conveyance came to be detained and seized way back on 9 th 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 ₹ 4,15,800/- 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. Application disposed off.

Summary

Issues:
1. Quashing of order passed under Section 130
2. Direction to release goods and vehicle without security
3. Initiation of fresh proceedings for confiscation
4. Deposit of tax and penalty amount for release of goods and conveyance

Analysis:
The writ application sought relief for quashing an order passed under Section 130 and directing the release of goods and vehicle without any security. Referring to a previous judgment, the court suggested recalling the impugned order and initiating fresh proceedings in line with legal principles. The learned AGP, after obtaining necessary instructions, stated that the impugned order would be recalled and fresh proceedings would be conducted, providing an opportunity for the writ applicants to be heard. Consequently, the court decided not to adjudicate the application on its merits, directing the authorities to proceed as per the AGP's statement. Noting the prolonged detention of goods and conveyance, the court directed the writ applicants to deposit a specified amount towards tax and penalty determined under Section 129 for the release of goods and conveyance pending the final outcome of confiscation proceedings.

The court clarified that the deposited amount was determined during the order of confiscation under Section 130. Upon deposit by the writ applicants, the goods and conveyance would be released accordingly. The court disposed of the writ application with the aforementioned directions and permitted direct service.