2023 (4) TMI 1060 - HC - GST

Seizure of goods alongwith vehicle - vehicle's number was wrongly recorded in the transit document, inadvertently - Section 129(3) of GST Act - HELD THAT - There are substance in the objections raised by the respondents inasmuch as the cosigner or the consignee would always be at liberty to challenge the confiscation of goods along with the supporting documents evidencing their ownership and merely because the order has been addressed to the driver of the vehicle would not be to the prejudice of the rights and contentions of the cosigner or the consignee. The petitioner would be at liberty to challenge the order impugned by way of an appeal. In such view of the matter, a challenge to the order impugned directly in the writ petition, not entertained - petition dismissed.

Summary

Issues involved: Challenge to order u/s 129(3) of GST Act regarding ownership of goods and right to appeal.

Ownership of Goods Issue:
The petition challenges an order under Section 129(3) of the GST Act, contending that the goods in question actually belong to the petitioner, despite the order being addressed to another individual. It is argued that although all necessary transit documents were provided, an error in recording the vehicle number led to the initiation of the impugned action.

Right to Appeal Issue:
The petitioner's counsel asserts that the order being directed at the driver precludes the cosigner or consignee from challenging it. However, the Standing Counsel argues that the cosigner or consignee can dispute the order by presenting documents proving ownership, and any tax deposit can be adjusted against the confiscated goods. The court acknowledges this stance, emphasizing that the cosigner or consignee retains the right to contest the confiscation with supporting ownership evidence, irrespective of the addressee of the order.

Judgment:
The court finds merit in the respondent's objections, ruling that the cosigner or consignee can challenge the confiscation of goods by providing ownership documents, even if the order is directed at the driver. Consequently, the petitioner is permitted to appeal the impugned order instead of directly challenging it through a writ petition. The court dismisses the writ petition, leaving all legal and factual matters open for examination in the appropriate forum.