2022 (5) TMI 1295 - HC - GST

Detention of seized goods alongwith the vehicle - prayer has been made for release of the said vehicle stating that the petitioner is suffering losses and is unable to make his both ends meet - HELD THAT - There are no reason to oppose any move by the petitioner if the provisions of law permit release of the vehicle before or after its confiscation by payment of an appropriate fine which has been determined or may be determined and imposed upon the vehicle in question. In case, any such application is filed, the appropriate authority would consider the same strictly in accordance with the provisions of Section 130 of the CGST within a period of two weeks from today. Application disposed off.

Summary

Issues:
Release of seized vehicle under Section 130 of the CGST Act without specific service of confiscation order.

Analysis:

The judgment delivered by the High Court of Jammu and Kashmir involves the case of the petitioner, who is the owner and driver of a vehicle seized by the respondent-authorities on 5.3.2019. The petitioner sought the release of the vehicle, citing financial losses and inability to sustain himself. The counsel for the petitioner highlighted that while the vehicle had been confiscated, the order of confiscation had not been formally served on the petitioner. The petitioner expressed willingness to pay the fine on the vehicle as per the provisions of Section 130 of the Central Goods and Services Tax (CGST) Act for the possible release of the vehicle.

The Court acknowledged the petitioner's plea and expressed no objection to the release of the vehicle if the legal framework allows for it, either before or after confiscation, upon payment of the appropriate fine determined or to be determined. The Court noted that the authority responsible for imposing the fine is also the entity authorized to release the vehicle upon payment of the fine. The Court directed the appropriate authority to consider any application for release filed by the petitioner within two weeks from the date of the judgment, strictly adhering to the provisions of Section 130 of the CGST Act. Importantly, the Court clarified that this decision does not prejudice the petitioner's right to challenge the confiscation order related to the vehicle in the future.

In conclusion, the High Court of Jammu and Kashmir allowed the petitioner's plea for the potential release of the seized vehicle under Section 130 of the CGST Act, subject to the payment of the requisite fine, and instructed the relevant authority to process any release application within a specified timeframe while preserving the petitioner's right to contest the confiscation order separately.