2021 (2) TMI 289 - 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. Relief sought by the petitioner in the writ-application under Article 226 of the Constitution of India.
2. Orders passed by a Coordinate Bench of the Court on 26.04.2019 and 09.05.2019 respectively.
3. Interim measures directed by the Court for release of detained goods and conveyance.
4. Expectations from the writ-applicant regarding participation in confiscation proceedings.
5. Disposal of the writ-application and clarification by the Court.

Analysis:

1. The petitioner sought various reliefs in the writ-application, including quashing and setting aside of notices issued by respondent no.2, release of goods with a specific truck registration number, and direction for immediate release of the detained goods. The petitioner also requested for any other appropriate orders as deemed fit and necessary in the circumstances of the case.

2. The Court referred to two orders passed by a Coordinate Bench on 26.04.2019 and 09.05.2019. The first order permitted the petitioner to pay the fine under section 130 of the Central Goods and Services Tax Act, 2017, subject to the final outcome of the proceedings. The second order directed the release of detained goods and conveyance upon payment of tax and penalty as computed by the authorities, along with filing a solemn undertaking to make good any deficit liability.

3. The interim measure directed by the Court on 09.05.2019 required the petitioner to pay the tax and penalty, provide a solemn undertaking, and submit proof of payment and identification documents for release of the goods and vehicle. The Court ordered the release of goods and conveyance subject to compliance with these conditions and allowed the petitioner to challenge any determinations in accordance with the law.

4. The Court expected the writ-applicant to participate in the proceedings initiated by the authority for confiscation of goods and vehicles. The writ-applicant was instructed to file a reply and present a case for getting notice discharged in MOV-10. It was clarified that if a final order of confiscation is passed under Section-130 of the Act, the writ-applicant would have the right to appeal under Section 107 of the Act.

5. The Court disposed of the writ-application, emphasizing that no opinion on the merits of the case was expressed. The authority concerned was directed to pass appropriate orders in accordance with the law based on the merits of the case. The judgment clarified the expectations from the writ-applicant and the available remedies in case of further legal actions.