2022 (1) TMI 437 - HC - GST

Permission to allowed to take delivery of the seized oxygen cylinders to be sent to Karnataka - seized oxygen cylinders are still in lying and are urgently required on account of the threat of Omicron (variant of Covid-19) - HELD THAT - The petitioner has an alternate remedy as far as the levy of tax and penalty are concerned, by filing appropriate appeal under Section 107 of the respective enactments. Considering the fact that the oxygen cylinders may be required urgently in view of threat by the out break of Omicron (variant of Covid-19), this Court is inclined to allow provisional release of the imported goods for being sent to Karnataka subject to the petitioner depositing a sum of ₹ 7,52,087/- towards CGST and SGST to the credit of the Government and furnishing Bank Guarantee for the equal amount of penalty imposed under the respective enactments. Petition disposed off.

Summary

Issues:
1. Challenge to order directing payment of tax and penalty
2. Request for provisional release of seized oxygen cylinders

Analysis:
1. The petitioner had previously filed writ petitions challenging Form GST MOV-7 dated 20.11.2021, which were disposed of with liberty to file additional representations and reply to Show Cause Notices. Subsequently, an order dated 17.12.2021 directed the petitioner to pay &8377; 7,52,087/- towards CGST and SGST along with penalty. The petitioner sought urgent delivery of seized oxygen cylinders due to the Omicron threat, offering to provide security under the relevant enactments. The Court noted the availability of an appeal remedy under Section 107 for tax and penalty issues, and allowed provisional release of the oxygen cylinders for transfer to Karnataka upon the petitioner depositing the required amount towards taxes and furnishing a Bank Guarantee for the penalty amount. The deposited sum was treated as a pre-deposit pending the appeal outcome.

2. In considering the urgency due to the Omicron threat, the Court balanced the need for provisional release of the oxygen cylinders with the statutory provisions allowing release upon payment of tax or furnishing a Bank Guarantee. The Court's decision to permit provisional release was contingent upon the petitioner meeting the specified conditions, ensuring compliance with the tax and penalty requirements while addressing the immediate necessity for the oxygen cylinders. The order aimed to facilitate the transfer of the essential medical supplies while safeguarding the revenue interests through the deposit and guarantee provisions, maintaining a balance between public health concerns and legal obligations.