2020 (12) TMI 312 - HC - GST

Detention of goods alongwith the vehicle - no valid document carried along with the vehicle while transporting it - petitioner seeks permission to clear the vehicle on furnishing a bank guarantee for the amounts demanded in Ext.P4 without prejudice to his right to contest the computation of the tax and penalty in proceedings under Section 129 (3) of the GST Act - HELD THAT - The Writ Petition is disposed off by permitting the petitioner to clear the vehicle on furnishing a bank guarantee for the amounts demanded in Ext.P4 notice. It is made clear that after the clearance of the vehicle, the respondent shall pass the adjudication order in Form GST MOV 09 after considering the contentions of the petitioner with regard to the computation of the tax and penalty.

Summary

Issues: Detention of vehicle due to lack of valid documents during transportation. Petitioner's request to clear the vehicle on furnishing a bank guarantee.

In this case, the petitioner challenged the detention order and notice issued for detaining a vehicle due to the absence of valid documents during transportation. The court noted that the reason for detention was the lack of proper documentation, which justified the detention. However, the petitioner sought permission to clear the vehicle by providing a bank guarantee for the demanded amounts without waiving the right to challenge the tax and penalty computation under Section 129(3) of the GST Act. The court allowed the petitioner to clear the vehicle upon furnishing a bank guarantee for the demanded amounts, with the condition that the respondent would issue an adjudication order after considering the petitioner's contentions regarding tax and penalty computation. The government pleader was directed to inform the respondent of this decision for prompt action, and the petitioner was instructed to submit a copy of the writ petition and judgment to the respondent for further proceedings.