2023 (9) TMI 129 - HC - GST

Seeking provisional release of seized goods - It is the case of the petitioner that the petitioner's business has come to a standstill pursuant to the impugned proceedings and therefore, the petitioner seeks for intervention - HELD THAT - The Counter Affidavit filed by the respondents seems to indicate that the petitioner has not maintained proper records from the date of purchase made after GST came into force on 01.07.2017. The petitioner has also not produced the documents that would be required for deciding the issue one way or the other. Considering the above, Court is inclined to dispose this writ petition by directing the respondents to issue appropriate notice to the petitioner to furnish such security as may be required to secure the interest of the revenue in accordance with Section 67(6) of the CGST Act read with Rule 140 of the CGST Rules, 2017. Petition disposed off.

Summary

Issues involved:
Challenge of impugned order of seizure and Prohibition Order, petitioner's business standstill, failure to produce necessary documents, request for release of seized goods, requirement of furnishing bond and security for provisional release.

Challenge of impugned order of seizure and Prohibition Order:
The petitioner challenged the impugned order of seizure in Form GST INS-02 and consequential Prohibition Order in Form GST INS-03 dated 30.05.2023, stating that the business has come to a standstill due to these proceedings.

Failure to produce necessary documents:
Despite directions from the Court to approach the first respondent for release of seized goods, the petitioner failed to submit the required documents such as stock register, purchase and sale bills for the specified period. The respondents highlighted the petitioner's non-compliance with document submission.

Request for release of seized goods:
The petitioner sought the release of the seized goods and was directed to furnish bond and security as per Section 67(6) of the CGST Act, 2017. However, the petitioner did not come forward to provide the necessary security for the release.

Requirement of furnishing bond and security for provisional release:
In order to obtain provisional release of the seized goods, the petitioner was required to furnish bond and security as prescribed by law. The Court directed the respondents to issue a notice to the petitioner for furnishing the required security within a specified timeframe.

Conclusion:
The Court disposed of the writ petition by instructing the respondents to issue a notice to the petitioner for furnishing the necessary security within fifteen days. Upon furnishing the required security, the goods shall be released. The petitioner was directed to comply with the legal provisions regarding security for the release of seized goods.