2023 (3) TMI 998 - HC - GST

Seeking release of seized goods - Revenue contends that the deposit made by the petitioner is not sufficient for the release of seized goods as the commodity which has been seized by the department is a perishable good and by virtue of section 67 (8), and a different procedure for deposit of amount is contemplated than what is observed by the petitioner. Whether the goods seized by the department qualifies to be a perishable good or a non-perishable good? HELD THAT - On facts, it is not in dispute that the goods seized by the department are included within the definition of tobacco and, therefore, there exists no doubt in coming to the conclusion that the seized goods would fall within the definition of perishable goods. While taking such a view, it may be observed that the notification issued by the department on 13th June, 2018 is otherwise not under challenge. Learned counsel for the State also submits that the deposit made by the petitioner under section 74 (5) of the GST Act cannot be of any help to the petitioner s cause for the purposes to release of goods in terms of section 67 (8) of the Act. The petitioner having not complied with the requirement of release of seized goods i.e. perishable goods, is not entitled to any direction by this court for release of such seized goods. At this stage, learned counsel for the petitioner submits that the petitioner shall deposit the requisite amount which may be warranted treating the goods to be perishable and in such circumstance the department be directed to release the goods, forthwith. In the event petitioner complies with the requirement of law for release of perishable goods under the applicable provisions, such claim of the petitioner would be dealt with expeditiously and in accordance with law - this petition is consigned to the record.

Summary

Issues involved:
Petition to quash seizure order under section 67 of UPGST Act and command to release seized goods.

Judgment Summary:

Issue 1: Classification of seized goods as perishable or non-perishable

The petitioner, a registered GST dealer, sought release of goods seized by the department under section 67 of UPGST Act. The department argued that the goods, identified as tobacco, fall under the category of perishable goods as per notifications issued by the Central Board of Indirect Taxes and Customs. The court agreed that tobacco is considered perishable as per the notifications and ruled that the goods seized are indeed perishable, rejecting the petitioner's contention that they should be treated as non-perishable due to not being sold within a specific timeframe.

Issue 2: Compliance with release requirements

The petitioner claimed to have deposited an amount under section 74 (5) of the GST Act and requested the release of the seized goods. However, the department contended that the deposit made was insufficient for the release of perishable goods under section 67 (8) of the Act. The court found that the petitioner did not meet the requirements for the release of perishable goods and therefore was not entitled to a direction for release. The petitioner expressed willingness to deposit the necessary amount as per the law for the release of perishable goods, and the court stated that if the petitioner complies with the requirements, the claim will be processed promptly and lawfully.

Final Decision

The court concluded that the petitioner, not having fulfilled the conditions for the release of seized perishable goods, was not entitled to a court order for their release. The petition was closed, with the petitioner given the opportunity to comply with the necessary legal requirements for the release of the goods classified as perishable.

This summary provides a detailed breakdown of the judgment, addressing each issue involved in the case and highlighting the key legal aspects and decisions made by the court.