2021 (1) TMI 257 - HC - GST

Release of detained consignments along with vehicle - detention on the ground that the supplier has not produced documents matching with its original destination - HELD THAT - Petitioner submitted that his client is willing to accede to her suggestion and prayed that the respondents be directed to complete the adjudication without any further delay. The petitioner is directed to furnish a bank guarantee, drawn on a nationalised Bank, to secure the sum mentioned in Ext.P7 notice; and if this is done, the respondents shall release the consignment, along with the vehicle to them without any avoidable delay - the learned Government Pleader is directed to communicate the contents of this judgment to the respondents, so that the petitioner, if they are able to furnish the bank guarantee today itself, can obtain release of the vehicle without any delay.

Summary

Issues:
1. Validity of interception of consignment by tax authorities.
2. Allegations of misuse of E-Way bill for tax evasion.
3. Requirement of bank guarantee for release of perishable consignment.

Analysis:
1. The petitioner, engaged in the supply of hill produce, received a consignment of cardamom for auction sale, supported by proper documentation as per CGST Rules. However, the consignment was intercepted by tax authorities, alleging discrepancies in the documents. The petitioner contended that the interception was baseless, citing a circular stating that errors in address/pin code do not warrant such actions. The court directed the release of the consignment upon furnishing a bank guarantee for the amount mentioned in the notice.

2. The Government Pleader raised concerns about potential tax evasion due to suspected misuse of the E-Way bill for multiple transactions. She suggested releasing the consignment upon the petitioner providing a bank guarantee, allowing for adjudication proceedings to be completed within two weeks. The petitioner agreed to the proposal, and the court ordered the completion of adjudication based on the issued notices, ensuring a fair opportunity for the petitioner to be heard either physically or through video-conferencing.

3. Considering the perishable nature of the consignment, the court emphasized the urgent release of the vehicle upon the petitioner furnishing the bank guarantee. It instructed the tax authorities to expedite the adjudication process within two weeks from the date of the judgment, emphasizing the importance of timely communication of the outcome to the petitioner. This case highlights the balance between tax enforcement measures and the need for prompt resolution in cases involving perishable goods.