2020 (2) TMI 1300 - HC - GST

Detention order - goods alongwith vehicle - SCN duly served under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, upon the driver of the vehicle on the same date, i.e. 11th September, 2019 - HELD THAT - In the said show cause notice, the date fixed for filing of the reply was 18th September, 2019. In spite of a specific date fixed for filing of reply, no reply was forthcoming from the petitioner. As such, an order under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, was passed determining the amount of tax and penalty for release of the goods and vehicle. This order was passed on 29th September, 2019. In the said order a total amount of ₹ 28,53,563.64p (Rupees twenty eight lakhs fifty three thousand five hundred and sixty three and paise sixty four only) was demanded as amount of tax and penalty for release of goods and vehicle. This order was sent by a letter dated 30th September, 2019 by Registered Post. Till date, this order has not been complied with - As such, the discretionary jurisdiction of this Court cannot be exercised under Article 226 of the Constitution of India in order to grant such reliefs to the petitioner as prayed for, considering the facts of the present case. Petition dismissed.

Summary

Issues:
Detention order challenge, show cause notice service, reply filing failure, tax and penalty determination, compliance failure, exercise of discretionary jurisdiction, dismissal of writ petition, right to prefer statutory appeal.

Detention Order Challenge:
The case involves a challenge to a detention order dated 11th September, 2019, issued by the Assistant Commissioner (Mobile Squad)-2, Kanpur. The detention order was followed by a show cause notice on the same date, which was duly served under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, upon the driver of the vehicle.

Failure to File Reply:
Despite a specific date fixed for filing a reply to the show cause notice, the petitioner failed to submit any response by the due date of 18th September, 2019. This non-compliance led to the passing of an order under section 129(3) of the Act, determining the amount of tax and penalty for the release of the goods and vehicle, which amounted to ?28,53,563.64.

Compliance Failure and Dismissal of Writ Petition:
The order demanding tax and penalty was sent by Registered Post on 30th September, 2019, but as of the judgment date, there had been no compliance with the order. The Court held that due to the non-compliance and the facts of the case, the discretionary jurisdiction under Article 226 of the Constitution of India could not be exercised to grant the reliefs sought by the petitioner. Consequently, the writ petition was dismissed.

Right to Prefer Statutory Appeal:
Although the writ petition was dismissed, the judgment clarified that the dismissal did not prevent the writ petitioner from exercising the right to prefer any statutory appeal, if available under the law. This provision ensures that the petitioner retains the option to pursue further legal remedies through the appropriate statutory appeal process.