2024 (5) TMI 1305 - HC - GST

Release of detained goods - Penalty order - appealable order or not - HELD THAT - The writ petition is disposed of with a direction, subject to the petitioner making a proper application before respondent no.2 to seek release of goods under Section 129 (1) (a) of the CGST Act, 2017, the goods and vehicle may be released subject to petitioner depositing the tax and penalty in terms of 129 (1) (a) of the CGST Act, 2017. Notwithstanding such deposit, the petitioner may be entitled to appeal against the penalty that may eventually be imposed.

Summary

Issues involved: Detention of goods under Section 129(1) of the U.P.G.S.T. Act, 2017, and the right to appeal against penalty orders.

Detention of Goods under Section 129(1) of the U.P.G.S.T. Act, 2017:
The petitioner, represented by counsel Aditya Pandey, claimed to be the bonafide owner/consignee of the goods detained under a detention order dated 21.04.2024. The petitioner sought release of the goods and the vehicle, arguing that there was no doubt regarding their ownership. The court acknowledged the petitioner's claim as the consignee and directed that upon making a proper application before respondent no.2, the goods and vehicle could be released under Section 129(1)(a) of the CGST Act, 2017. The release was subject to the petitioner depositing the tax and penalty as per the provisions of Section 129(1)(a) of the CGST Act, 2017. Additionally, the petitioner was granted the right to appeal against any penalty imposed in the future.

Right to Appeal Against Penalty Orders:
The court emphasized that despite depositing the tax and penalty for the release of goods, the petitioner retained the right to appeal against any penalty that might be levied subsequently. This right to appeal was deemed available to the petitioner even after the initial deposit, ensuring a fair process for challenging penalty orders under the CGST Act, 2017.