2018 (11) TMI 334 - HC - GST

Release of detained goods - petitioner contends that when the authorities detained the goods even the very authorities were unaware of the procedure to be adopted - Government Pleader, on the other hand, submits that the authorities have followed the procedure and passed the Ext.P8 order - Held that - The petitioner can pay the demanded tax and penalty under protest, to got the goods released - petition disposed off.

Summary

Issues:
Detention of consignment under Section 129 of GST Act; Determination of tax and penalty; Procedure followed by authorities; Adjudication of detention issue; Statutory appeal under Section 107 of the Act.

Detention of Consignment:
The petitioner, a dealer under the KVAT Act, faced detention of orthopedic implants consignment under Section 129 of the GST Act upon migration. The Court, through an interim order, directed authorities to adjudicate the detention issue promptly.

Determination of Tax and Penalty:
Initially, authorities demanded a substantial amount for interim custody and penalty. However, the final determination reduced the tax and penalty to a lesser amount. The petitioner's counsel argued procedural discrepancies and highlighted the authorities' lack of clarity in following the correct procedure.

Procedure Followed by Authorities:
The petitioner contended that authorities were unaware of the correct procedure for detention, as evidenced by the issuance of notices in an old format. The Government Pleader defended the authorities' actions, stating that the proper procedure was followed, and the petitioner could appeal under Section 107 of the Act if dissatisfied.

Adjudication of Detention Issue:
The Court, without delving into the merits of the case, allowed the petitioner to pay the demanded tax and penalty under protest to secure the release of goods. The petitioner was advised to contest the penalty proceedings before the appellate forum, ensuring due process and the right to challenge the penalty imposed.

Statutory Appeal under Section 107:
The judgment emphasized the availability of the statutory appeal mechanism under Section 107 of the Act for the petitioner to address any grievances regarding the tax, penalty, or detention issue. This provision ensures the petitioner's right to seek redressal through the established appellate process, maintaining legal recourse and procedural fairness.

In conclusion, the judgment disposed of the writ petition, providing guidance on the payment under protest, contesting penalty proceedings, and utilizing the statutory appeal route for addressing concerns related to the detention, tax, and penalty imposed during the transportation of goods under the GST Act.