2023 (9) TMI 1182 - HC - GST

Release of seized property - non-payment of GST - HELD THAT - The petitioners shall deposit an amount of Rs.23,82,620/- in a separate bank account of any Nationalized Bank which in turn shall be invested in a fixed deposit in the name of the petitioners, initially for a period of one year and which shall be renewed from time to time - The original receipt of the fixed deposit shall be handed over to respondent no. 3. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment include the release of seized property by the Gujarat Goods and Service Tax Department, quashing of impugned orders of Deputy Commissioner of State Tax, Surat, and the legality of the actions taken under Section 69 of the Maharashtra GST Act.

Release of Seized Property:
The petitioners, engaged in trading metal scraps, were arrested for alleged non-payment of GST. The petition sought the release of seized property and quashing of orders. The petitioners cooperated with authorities, but no further action was taken. The petitioners questioned the authority of Gujarat Officers for the seizure, citing Section 67. The court issued notice returnable on a specified date.

Resolution and Handover of Goods:
After hearings, an agreement was reached between the parties. The respondents agreed to return specific items to the petitioners and transfer others to the Maharashtra GST Department. A schedule was prepared for the return of goods, and the petitioners were to appear before the GST Authority. The court ordered the parties to appear for the handover on a specified date.

Handover of Seized Items:
Following the court order, the State Tax Officer in Surat handed over items like cash, jewelry, watches, digital records, rubber stamps, and documents to the petitioners and the Maharashtra GST Department. The petitioners filed an undertaking not to dispose of the items until the case's final disposal. The court ordered the petitioners to deposit a specified amount in a separate bank account and abide by the undertaking.

Disposition of Petition:
The petition was disposed of with directions for the petitioners to deposit a specific amount in a fixed deposit, hand over the original receipt to the State Tax Officer, and adhere to the filed undertaking. The court clarified that it did not express any opinion on the case's merits, leaving all contentions open for appropriate forums. Notice was discharged.