2022 (11) TMI 427 - HC - GST

Seeking release of goods - goods are diminishing nature - petitioner prayed for release of the goods on the ground that since long the goods are under confiscation and could be released on appropriate conditions - Section 129 and Section 130 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The respondents shall release the goods and conveyance of the petitioner, confiscated and detained pursuant to the aforementioned order dated 21.03.2022 passed in FORM GST MOV-11, subject to the following conditions - (i) The petitioner deposits the amount of tax of Rs. 12,02,785/-. (ii) The petitioner deposits the amount of penalty to the tune of Rs. 12,02,785/-. (iii) The petitioner furnishes bond to the tune of Rs. 66,82,138/- towards the amount of fine. Upon compliance of the above conditions by the petitioner, the goods and conveyance of the petitioner be released by the authorities.

Summary

Issues:
1. Release of goods under confiscation.
2. Interaction of Sections 129 and 130 of the Central Goods and Services Tax Act, 2017.
3. Provisional release of goods pending appeal.
4. Imposition of conditions for release of goods.

Analysis:
1. The petitioner sought to set aside a confiscation order dated 21.3.2022 under Section 130 of the Central Goods and Services Tax Act, 2017, and requested the respondent to provisionally release the goods pending appeal and application. The petitioner argued that the goods, under confiscation for a long time, were diminishing in value, causing prejudice. The court considered the nature of powers under Sections 129 and 130 of the Act in this context.

2. The court noted that a similar issue was addressed in Special Civil Application No. 8353 of 2012, which was scheduled for a return on 24.11.2022. The prayer for interim relief regarding the release of goods and vehicles was to be considered in line with the conditions imposed in the aforementioned order of 01.07.2022.

3. The impugned order revealed that a penalty of Rs. 12,02,785/-, fine and other charges amounting to Rs. 66,82,138/-, and tax of Rs. 12,02,785/- were demanded. As interim relief, the court directed the release of the confiscated goods and conveyance subject to specific conditions: depositing the tax and penalty amounts, and furnishing a bond towards the fine. Compliance with these conditions would result in the release of goods and conveyance by the authorities.

In conclusion, the judgment addressed the issues related to the release of confiscated goods, the application of Sections 129 and 130 of the CGST Act, provisional release pending appeal, and the imposition of conditions for release. The court provided interim relief with specific conditions to be met by the petitioner for the release of goods and conveyance.