2019 (8) TMI 1224 - HC - GST

Release of seized vehicle alongwith the goods - driver was unable to furnish E-way Bill - sub-section (3) of section 129 and section 130 of CGST Act - HELD THAT - For the purpose of release, we can ask the writ applicant to deposit the amount of tax as determined and equivalent amount towards penalty subject of-course to the right of the adjudication so far as the confiscation proceedings under section 130 of the Act, 2017 is concerned. We direct the writ applicant to furnish Bank Guarantee of the amount of ₹ 2,05,768/-. Upon furnishing of a Bank Guarantee, the authority shall release the vehicle as well as the goods. We also direct that the authority shall not proceed further with the show cause notice which has been issued for the purpose of confiscation of the vehicle and the goods under section 130 of the Act, 2017.

Summary

Issues:
1. Detention and seizure of goods under the Central Goods and Service Tax Act, 2017.
2. Invocation of sections 129 and 130 of the Act without proper inquiry.
3. Interim order for release of the vehicle and goods.
4. Requirement of deposit for release under section 129.
5. Direction to furnish a Bank Guarantee for release.

Analysis:

1. The judgment addresses the detention and seizure of goods under the Central Goods and Service Tax Act, 2017. The writ applicant, a registered dealer, purchased aluminum sections which were intercepted in transit without a furnished E-way Bill, leading to detention and subsequent seizure by respondent No.3. A notice was issued under sub-section (3) of section 129, followed by a notice for confiscation of goods and penalty under section 130 of the Act.

2. The Court notes the concern raised in similar petitions regarding the immediate invocation of section 130 without a proper inquiry. The judgment reserves the decision on these issues but grants an interim order for the release of the vehicle and goods in this particular case, aligning with the approach taken in similar matters.

3. In light of the provisions of section 129, the Court determines that for the release of the goods, the writ applicant can be asked to deposit the tax amount determined along with an equivalent penalty, while maintaining the right to adjudication regarding the confiscation proceedings under section 130.

4. As an interim measure, the Court directs the writ applicant to furnish a Bank Guarantee amounting to ?2,05,768. Upon providing the Bank Guarantee, the authority is instructed to release the vehicle and goods, with a specific directive to halt further proceedings on the show cause notice issued for confiscation under section 130 of the Act, 2017.

5. The judgment concludes by permitting the respondent Nos.1, 2 & 3 to act accordingly, ensuring compliance with the interim directives issued for the release of the vehicle and goods, and the suspension of further action under section 130 pending adjudication.