2021 (2) TMI 288 - HC - GST

Release of seized goods alongwith conveyance - Section 130 of the GST Act - HELD THAT - The matter is at the stage of MOV-10. We expect the writ-applicants now to participate in the proceedings initiated by the authority for the purpose of confiscation of the goods and the vehicles. The writ-applicants shall file his reply and shall make his case good for the purpose of getting notice discharged in MOV-10. Ultimately, if the final order of confiscation is passed under Section130 of the Act, then the writ-applicants will have the remedy to file an appeal under Section 107 of the Act. This writ-application stands disposed of.

Summary

Issues:
1. Challenge to the order of detention under Section 129(1) of the GST Act
2. Request for release of goods and conveyance
3. Legal proceedings for confiscation of goods and vehicles
4. Provision for appeal under Section 107 of the Act

Analysis:
1. The writ-application challenged the order of detention under Section 129(1) of the GST Act, seeking a writ of mandamus to quash the order and notice for confiscation and penalty. The petitioners argued that the actions of the respondent were illegal, unlawful, and against natural justice. The court noted the previous orders of a Co-ordinate Bench which directed the release of the detained goods and conveyance subject to payment of tax and penalty, along with a solemn undertaking to cover any deficit liability. The court did not delve into the facts of the case, relying on the clarity provided by the previous orders.

2. The order dated 16.05.2019 directed the release of the goods and conveyance upon compliance with specified conditions, including payment of tax and penalty, submission of a solemn undertaking, and providing identification documents. The court emphasized the petitioner's right to challenge the computed amounts and the importance of participating in the confiscation proceedings. The matter was at the MOV-10 stage, with the court expecting the writ-applicants to engage in the process and file necessary replies to potentially avoid confiscation.

3. The court highlighted the need for the writ-applicants to actively participate in the confiscation proceedings initiated by the authority. It stressed the importance of presenting a strong case to potentially have the notice discharged in MOV-10. The judgment clarified that if a final order of confiscation is issued under Section 130 of the Act, the writ-applicants would have the option to appeal under Section 107 of the Act. The court disposed of the writ-application, emphasizing that it had not expressed any opinion on the case's merits, leaving the authority to make appropriate decisions in accordance with the law.

4. The judgment concluded by outlining the legal process for the writ-applicants, indicating the steps to follow in the confiscation proceedings and the availability of the remedy of appeal under Section 107 of the Act if a final order of confiscation is issued. The court's decision focused on procedural aspects and the importance of active participation in the legal proceedings, while refraining from making any substantive judgment on the case itself.