2020 (9) TMI 214 - HC - GST

Seizure/detention of goods/materials - seizure on the ground that e-Way bills tendered for the goods in movement stood expired when the vehicle entered within the territory of the State of Tripura and were intercepted in the Churaibari Check Post - Section 129(3) of the Central Goods and Services Tax Act, 2017 - HELD THAT - Learned Advocate General has generously agreed and submitted that the court may pass the similar order directing the petitioner to deposit 25% of the tax and penalty along with the bond pledging payment and securing the rest of the demand, subject to the outcome of the appeal. The respondents are directed to release the detained materials, on deposit of 25% of the disputed tax and penalty, by the petitioner, as demanded under Annexure-9 collectively and also on securing the total demand by a bond whereby the petitioner shall pledge for payment of for the rest of the demand subject to the outcome of the appeal - On deposit of 25% of the tax and penalty as aforementioned, and the bond the authority which detained those goods/materials shall release them within three days from the deposit of the said amount and the bond. Time Limitation - HELD THAT - If the appeal is filed within 15 days from today, the period of limitation shall stand extended till the expiry of that period of 15 days. Petition disposed off.

Summary

Issues involved:
Challenge to seizure/detention of goods due to expired e-Way bills, issuance of notice under relevant tax Acts, demand of tax and penalty, appealability of orders, request for immediate release of goods, consideration of similar past judgment, request for provisional release of goods, agreement on depositing 25% of disputed tax and penalty, direction for release of detained materials, extension of limitation period for filing appeal.

Analysis:
The petitioner challenged the seizure/detention of goods due to expired e-Way bills upon entry into Tripura. Notices were issued under Section 129(3) of the Central Goods and Services Tax Act, 2017, the State Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017, imposing tax and penalty for illegal transportation. The petitioner was directed to appear before the Superintendent of State Sales Tax for a hearing. The petitioner's counsel argued that the e-Way bills had expired during transit, hindering renewal within Tripura's territory.

The counsel urged for the immediate release of vehicles and goods, challenging the orders of detention, seizure, and tax/penalty imposition. The State's Advocate General contended that the orders were appealable and the writ petition should not be maintained to preserve procedural propriety and revenue interests. The petitioner's counsel referred to a prior judgment allowing provisional release of goods upon depositing 25% of disputed tax and penalty, with a bond securing the rest, but highlighted the expired limitation period for filing an appeal in the present case.

Both parties agreed to a similar order for the petitioner to deposit 25% of the tax and penalty with a bond, subject to the appeal's outcome. The Court directed the release of detained materials upon the petitioner's compliance with the deposit and bond requirements. The Court also extended the limitation period for filing an appeal by 15 days. The petition was disposed of, with instructions to provide a copy of the order to the respective counsels.