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TMI Blog2023 (12) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 129(1)(a) of the CGST Act. The order passed by the authorities dated October 19, 2023 is quashed and set aside. The authorities are directed to carry out the exercise in terms of Section 129(1)(a) of the CGST Act within a period of three weeks from today - Petition allowed. - Hon ble Justice Siddhartha Varma And Hon ble Justice Shekhar B. Saraf For the Petitioner : Mr. Aditya Pandey, Adv. For the Respondents : Mr. Ankur Agarwal, Adv. ORDER 1. The present writ petition, filed under Article 226 of the Constitution of India, assails the actions of the respondents authorities with regard to detention of the goods and vehicle of the petitioner as well as subsequent orders passed under Section 129 of the Central Goods and Services Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the date of interception that is October 3, 2023, the petitioner was having a registration under the CGST Act. The said registration was subsequently suspended on October 06, 2023 by the authorities at West Bengal with effect from September 18, 2023. Upon the detention being made, the petitioner being the owner of the goods came forward and sought for release of the goods under Section 129(1)(a) of the CGST Act. However, the authorities have determined the penalty to be paid as per Section 129(1)(b) of the CGST Act. 6. Counsel for the petitioner submits that as per the Circular No.76/50/2018-GST dated 31st December 2018, it has been clarified by the Central Board of Indirect Taxes and Customs, GST Policy Wing that if the invoice or any ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt passed by Division Bench of this Court in M/s Sahil Traders v. State of U.P. and another , 2023:/AHC:116953-DB (Coram: Hon ble Saumitra Dayal Singh, J. and Hon ble Rajendra Kumar-IV, J.), wherein it has been categorically held that Circular dated December 31, 2018 is applicable and when the tax invoice and the E-way bill are produced by the assessee, the goods shall be treated as belonging to the assessee, who comes before the authorities as the owner of the goods and produces the above documents. The Court further held in such cases that the security is required to be in terms of Section 129(1)(a) and not under Section 129(1)(b) of the CGST Act. The same principle has been followed by the Division Bench presided over by the then Chief J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner of the goods does not come forward for payment of such tax and penalty; 11. On a bare perusal of the judgments cited above and on first principles, it is patently clear that in the present case, goods were found with proper tax invoice and E-way bill belonging to the petitioner. Hence, Circular dated December 31, 2018 would apply and the petitioner would be deemed to be the owner of the goods. Ergo, the goods would have to be released in terms of Section 129(1)(a) of the CGST Act. 12. In light of above, the order passed by the authorities dated October 19, 2023 is quashed and set aside. The authorities are directed to carry out the exercise in terms of Section 129(1)(a) of the CGST Act within a period of three weeks from today. 13. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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