2020 (11) TMI 146 - HC - GST

Detention order - penalty - release of the goods against furnishing of the bank guarantee and simple bond - Section 129 of the State Goods and Service Tax Act - HELD THAT - Writ petition is disposed of by directing the 1st respondent to release the goods on furnishing the requirements of law as noticed above i.e. furnishing the bank guarantee and simple bond and adjudication be also done in accordance with law as expeditiously as possible.

Summary

Issues:
Challenge to Exts.P4, 4(a) and P7 notices; Direction to refrain from proceedings under Section 129 of SGST Act.

Analysis:
The petitioner challenged Exts.P4, 4(a) and P7 notices and sought a direction to the 1st respondent to refrain from further proceedings under Section 129 of the SGST Act. The counsel for the petitioner argued that the order of detention and penalty imposition did not align with Circular Ext.P5 paragraph No.3. However, the court clarified that it was not within its purview to determine the applicability of the Circular at this stage, as it was the Adjudicating Authority's prerogative to decide on obtaining the goods and imposing penalties. The petitioner was advised to raise these points during the adjudication proceedings. In response to this view, the petitioner's counsel requested the release of the goods upon furnishing a bank guarantee and a simple bond as per the provisions of Section 129 of the SGST Act.

The court accepted the petitioner's prayer for the release of the goods upon fulfilling the requirements of providing a bank guarantee and a simple bond. The writ petition was disposed of with a direction to the 1st respondent to release the goods as per the aforementioned conditions. Additionally, the court instructed that the adjudication process should be conducted in accordance with the law and as expeditiously as possible.