2021 (6) TMI 775 - HC - GST

Seeking release of seized goods - silver biscuits - kacha silver articles - cash - typographical errors were made with regard to the particulars of the order of detention - HELD THAT - The subsequent development in the form of passing of the final order of confiscation as well as imposition of tax, penalty and fine upon the petitioners has rendered their initial challenge to the show cause notice infructuous. The petitioners are at liberty to assail the final order before the appellate Forum in accordance with law, if they are so advised. The 1st respondent is directed to upload the order in electronic form in its official website forthwith, if not already done so as to enable to the asseessees to seek appropriate appellate remedy in accordance with law - petition disposed off.

Summary

Issues:
Challenge to GST MOV 10 Notice dated 03.02.2021 and release of seized goods - 105 kgs of silver biscuits, kacha silver articles, and cash.

Analysis:
The petitioners challenged a GST MOV 10 notice dated 03.02.2021, seeking the release of seized goods - 105 kgs of silver biscuits, kacha silver articles, and cash amounting to ?2,05,000. The goods were seized from a conveyance traveling from Hyderabad to Salem without requisite invoices/challans, intercepted by the police. Tax authorities issued the impugned notice for confiscation of goods and conveyance, initiating proceedings before the Assistant Commissioner. The petitioners participated in the proceedings but also filed a writ challenging the notice, citing lack of detention order GST MOV-6 and tax specification under GST MOV-7.

The department, in response, admitted typographical errors in the notice but defended its issuance based on reasonable belief of tax evasion. An order was passed confiscating the silver and imposing tax, penalty, and fine totaling ?39,20,000. The petitioners were unable to appeal as the order was not uploaded on the official portal. The court considered the subsequent developments, finding the initial challenge to the notice moot due to the final confiscation order. The petitioners were allowed to appeal the final order, with the directive to upload it on the official website for appellate remedy. The petitioners could raise all issues, including the validity of the show cause notice, during the appeal proceedings.

In conclusion, the writ petition was disposed of with no order as to costs, allowing the petitioners to pursue appropriate appellate remedies. Any pending miscellaneous petitions were closed as well.