2021 (10) TMI 925 - HC - GST

Seeking release of detained goods alongwith conveyance - bogus purchases - opportunity of hearing provided to the petitioner or not - entire order replaced by new order - HELD THAT - Note for speaking to minutes stands disposed of.

Summary

Issues: Detention of goods and conveyance under GST Act, Provisional release of goods, Consideration of application for release, Compliance with Section 67(6) of the Act, Passing appropriate order, Disposal of writ application

Detention of Goods and Conveyance under GST Act:
The petitioner, a registered proprietary firm dealing in wholesale/retail purchase and sale of aluminum and ferrous waste, challenged the detention of a conveyance bearing registration number GJ01-DY-7177 by respondent No.2. The detention was based on the suspicion of bogus purchases and circular billing. The respondent issued notices for confiscation without providing an opportunity for a hearing. The petitioner sought to quash the notices and release the goods and conveyance. The Court noted the physical verification of goods and the report issued by the respondent on the same day as detention.

Provisional Release of Goods:
The petitioner's advocate relied on a previous case and requested the Court to issue a writ directing the provisional release of the goods under Section 67(6) of the GST Act. The Court considered the petitioner's request for provisional release before the matter progressed to the stage of GST MOV-10. The Court emphasized the need for the authority to consider the provisional release application and pass a speaking order in this regard within two weeks.

Consideration of Application for Release:
The Court directed the authority to pass a speaking order on the provisional release of goods and the vehicle, allowing the petitioner to challenge if necessary. The Court disposed of the writ application in line with a previous order, instructing respondent No.2 to review the application and make a lawful decision promptly. The Court emphasized the importance of compliance with the directions and guidelines provided in a previous case.

Compliance with Section 67(6) of the Act:
The Court highlighted the petitioner's ownership of the goods and the seizure of both goods and the vehicle by GST Authorities. It stressed the need for the authority to consider the provisional release application under Section 67(6) of the Act on the scheduled date, ensuring compliance with legal procedures.

Passing Appropriate Order:
The Court refrained from delving into the merits of the case but acknowledged the petitioner's concerns regarding the provisional release of goods and the vehicle. It directed the officer to pass an order on the provisional release promptly, following the legal provisions and the Court's guidelines from previous cases.

Disposal of Writ Application:
The Court decided not to delve into the merits of the case and directed respondent No.2 to consider the application for release promptly. It instructed the officer to pass an appropriate order in compliance with the law and provided a timeline for the decision. The Court emphasized the importance of timely action and compliance with legal directives.

This detailed analysis of the judgment addresses the issues of detention of goods and conveyance under the GST Act, provisional release of goods, consideration of the release application, compliance with statutory provisions, passing an appropriate order, and the disposal of the writ application.