2021 (7) TMI 398 - HC - GST

Penalty under Section 129(1)(b) of CGST Act - petitioners submits that at best liability of petitioner to pay tax and penalty would arise under Section 129(1)(a) and that the Authority has erroneously imposed penalty treating it to be a matter under Section 129(1)(b) - HELD THAT - In view of the fact that GST Tribunal has not yet been constituted, the present writ petition is entertained. Matter requires consideration - respondents are accorded four weeks' time to file response in the matter. The rejoinder affidavit, if any, may be filed within one week thereafter.

Summary

Issues:
1. Challenge against orders passed under IGST Act and CGST Act.
2. Jurisdiction of GST Tribunal.
3. Liability of petitioner under Section 129(1)(a) and 129(1)(b) of CGST Act.
4. Release of seized goods upon payment of tax and penalty.

Analysis:
1. The petition challenges the orders passed by respondent no.3 and respondent no.4 under the IGST Act and CGST Act. The petitioner's counsel argues that the liability of the petitioner should arise under Section 129(1)(a) and not under Section 129(1)(b) as determined by the Authority. The court notes the absence of a GST Tribunal and entertains the writ petition.

2. The court grants four weeks to the respondents to file a response and allows the petitioners to file a rejoinder affidavit within one week thereafter. The case is connected with a previous writ petition for further proceedings after the specified period.

3. The court, considering the circumstances, orders the release of the seized goods to the petitioners upon payment of the specified tax and a 100% penalty under Section 129(1)(a) of the Act. The petitioners are directed to provide security other than cash and bank guarantee for the remaining amount. However, the payment is subject to final determination in the matter.

In conclusion, the judgment addresses the challenge against orders under the IGST and CGST Acts, acknowledges the absence of a GST Tribunal, clarifies the liability of the petitioner under specific sections of the CGST Act, and allows the release of seized goods upon payment of tax and penalty with certain conditions.