2021 (4) TMI 789 - HC - GST

Detention of goods alongwith the vehicle - validity of the e-way bill which the driver was carrying had expired - power of authorities to inspect - HELD THAT - The Superintendent has the power to detain or seize the goods as well as the conveyance, but also has the power to release such goods and conveyance provisionally on furnishing bond or such security or payment as found appropriate - In the present case, let the authorities continue the proceedings for assessment. However, till the same is done, it would not be appropriate to continue the detention and seizure of the conveyance as well as the goods. Looking to the nature of defect in the documents of the transporter alleged, the value of the goods detained, the possible tax and penalty demand which may arise, it is directed that the respondents shall release the vehicle and the goods upon the petitioner fulfilling the conditions imposed of furnishing of bond, deposit and bank guarantee - petition disposed off.

Summary

Issues:
1. Detention of goods and vehicle due to expired e-way bill validity.
2. Demand for payment of Central GST, State GST, and penalty.
3. Power of authorities under Section 67 and Section 129 of Tripura GST Act.
4. Provisional release of detained goods and conveyance.
5. Conditions for release of vehicle and goods.

Analysis:

1. The petitioner, a transporter, had their Bolero jeep carrying electronic goods detained by State GST authorities at Churaibari due to an expired e-way bill validity. The authorities demanded the petitioner to deposit Central GST, State GST, and penalty amounting to a significant sum.

2. The petitioner expressed willingness to undergo assessment and pay any due tax or penalty but argued against the harshness of demanding the full tax amount with a 100% penalty for releasing the vehicle and goods. The petitioner requested the court to order release on reasonable conditions.

3. The judgment highlighted the powers of authorities under Section 67 and Section 129 of the Tripura GST Act. Section 67 empowers authorities to inspect places of business, seize goods, and release seized goods provisionally upon certain conditions. Section 129 deals with detention or seizure of goods in transit in contravention of the Act or rules.

4. It was noted that the Superintendent had the authority to detain or seize goods and conveyance, but also had the power to release them provisionally upon furnishing a bond, security, or payment as deemed appropriate.

5. The court directed the authorities to continue assessment proceedings but ordered the release of the vehicle and goods under specific conditions. The petitioner was required to furnish a bond for the full tax and penalty amount, deposit 25% under protest or provide a bank guarantee, and cooperate in the assessment process while retaining the right to raise legal contentions.

Overall, the petition was disposed of with the directive for the authorities to release the vehicle and goods based on the specified conditions, allowing for the assessment process to proceed while alleviating the immediate burden on the petitioner.