2021 (10) TMI 42 - HC - GST

Seeking provisional release of the goods and vehicle - Section 67(6) of the Central / Gujarat Goods and Service Tax Acts - goods detained on the ground that the e-way bill was not available with the driver - HELD THAT - The chronological events are noticed, more particularly the date of order of detention of the truck with the goods on 07.09.2021 in the Form of GST MOV 10. They have come on record. The communication to the concerned authority by the petitioner on 16.09.2021 raises both the issues. The petitioner herein is the owner of the goods and it is his case that his vehicle and goods both have been seized by the GST Authorities and when the goods were being transported in the alleged contravention of the Act and the Rules, order is passed of detention under the GST MOV 10 and as the matter is at the stage of GST MOV 10, this Court would not like to enter into the merits of the matter - The application preferred by the petitioner shall need to be considered by the authority for this being the goods in transit on applying the provisions of section 67(6) of the Act. Request shall be made by the petitioner to consider such provisional release on 24.09.2021 or on any other scheduled date. Let a speaking order be passed by the authority / officer concerned in this regard on the issue of provisional release to enable the petitioner to take necessary legal course if in case there arises any need for challenge - petition disposed off.

Summary

Issues:
1. Detention and confiscation of goods due to non-availability of e-way bill.
2. Allegation of suspension of recipient's registration and undervaluation of goods.
3. Petitioner's request for provisional release of goods and vehicle under Section 67(6) of the GST Act.
4. Prayer for writ of mandamus, quashing of confiscation notice, and release of goods and vehicle.
5. Consideration of application for provisional release and passing of speaking order by the authority.

Analysis:
1. The petitioner, a proprietorship firm, faced detention and confiscation of goods by the 2nd respondent authority due to the absence of an e-way bill during transportation. Despite no discrepancy in invoiced quantity, the goods were detained, leading to the petitioner seeking relief through a writ petition.

2. Apart from the e-way bill issue, the authority alleged the recipient's registration was suspended and the goods were undervalued. The petitioner contested these allegations, pointing out the active status of the buyer's registration and raising objections to the confiscation notice.

3. Seeking provisional release under Section 67(6) of the GST Act, the petitioner approached the court with prayers for mandamus to release the goods, quash the confiscation notice, and stay further proceedings. The petitioner emphasized the urgency of the situation and requested immediate action.

4. During the hearing, the court considered the petitioner's application for provisional release, emphasizing the need for a speaking order by the authority. The court directed the concerned officer to assess the request promptly, allowing a two-week period before any order of confiscation. The judgment referenced previous cases and guidelines for the authority's consideration.

5. Ultimately, the court chose not to delve into the merits of the case but directed the authority to process the application for release expeditiously, following the law and court guidelines. The petition was disposed of with permission for necessary legal action if required, ensuring a timely resolution of the provisional release request.