2021 (3) TMI 536 - HC - GST

Maintainability of petition - alternative remedy of appeal - release of detained truck alongwith the goods - HELD THAT - The writ applicant is relegated to avail the remedy of filing an appeal against the final order of confiscation available to him under Section 107 of the Act in accordance with law. Application disposed off.

Summary

Issues:
1. Validity of detention order under section 129(1) of the Central Goods and Services Tax Act, 2017.
2. Confiscation of goods based on valuation report.
3. Relief sought by the writ applicant.

Analysis:

Issue 1: Validity of detention order under section 129(1) of the Central Goods and Services Tax Act, 2017
The writ applicant challenged the detention order dated 31.8.2019, seeking a writ of certiorari or mandamus to quash the order and direct the release of the truck and goods without payment of tax or penalty. The advocate for the petitioner argued that the requirements of section 68 of the CGST Act were satisfied as the necessary documents were carried by the person in-charge of the conveyance. It was contended that undervaluation of an invoice cannot be a ground for detention under section 129 when all required documents are furnished. The court, considering the submissions and a valuation report, directed the release of the truck along with goods as an ad-interim relief, pending further proceedings.

Issue 2: Confiscation of goods based on valuation report
The court noted a valuation report prepared for the Additional Commissioner of Commercial Tax, which formed the basis for seeking confiscation of the goods. However, the court found the valuation report dated 30.08.2019 lacking in credibility. Consequently, the court directed the release of the truck and goods, subject to the petitioners filing an undertaking to pay the liability if they fail in the case ultimately. This decision was made to ensure that the petitioners have an opportunity to challenge the final order of confiscation through the appeal process under Section 107 of the Act.

Issue 3: Relief sought by the writ applicant
During the proceedings, the advocate for the writ applicant informed the court that a final order of confiscation in Form GST MOV 11 had been passed. In light of this development, the court disposed of the writ application, advising the writ applicant to pursue the remedy of filing an appeal against the final confiscation order as provided under the law.

In conclusion, the High Court of Gujarat addressed the challenges to the detention order under the CGST Act, the confiscation of goods based on a valuation report, and the relief sought by the writ applicant. The court provided interim relief by directing the release of the truck and goods, subject to certain conditions, and advised the petitioner to pursue the appeal process against the final confiscation order.