2023 (11) TMI 1204 - HC - GST

Release of goods alongwith vehicle on furnishing a bond in Form GST INS-04 and security in form of bank guarantee as per Rule 140(1) of the UPGST Rules read with Section 67(6) of the UPGST Act, 2017 - HELD THAT - Learned Standing Counsel appearing for the respondents has admitted that under the rules, it is open for a party to claim provisional release of the goods and vehicle on furnishing the security in the Form of a Bank guarantee and bond in Form GST INS-04, as prayed for by the petitioner. Since the submission made by counsel for the petitioner is not being disputed, the writ petition is allowed.

Summary

Issues involved: Provisional release of goods and vehicle, mistaken vehicle number on documentation, penalty imposition, application for release on furnishing bond and security.

Summary:

The petitioner, a transportation company, was involved in the transportation of goods dispatched by M/s Havells India Limited to Shree Balaji Electric Company. Due to a mistake in the documentation where the vehicle number was wrongly mentioned, the vehicle was intercepted, and a penalty of Rs. 49,10,520/- was imposed. The petitioner rectified the mistake in the e-way bill and applied for provisional release of the goods and vehicle by furnishing a bond and security as per the rules.

The petitioner contended that there was no evidence of tax evasion and no detention order was issued under Section 129(1). The petitioner's request for provisional release was denied initially. However, the Standing Counsel for the respondents admitted that provisional release could be granted on furnishing the required security.

The Court allowed the writ petition and granted the relief sought by the petitioner. A mandamus was issued, directing the respondent to release the goods and vehicle provisionally upon the petitioner furnishing a bond and security in accordance with the UPGST Rules and the UPGST Act, 2017.