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TMI Blog2024 (8) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... on 129 of the respective GST enactments cannot be countenanced. The purpose of Section 129 as it stood during the material period was to recover tax on such goods in transit, where removal of such goods fell short of any of the statutory compliance required for removal of goods - the tax was to be collected to the extent of tax that was payable in the returns at the stage of detention of such detained goods. Tax is to be debited from an assessee's electronic credit account maintained under the respective GST Act. If a supplier's goods were detained and subjected to tax and penalty under Section 129 of the GST Act as it stood prior to amendment, such supplier is entitled to claim refund of the excess tax, if any, paid in the returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the concerned person in accordance with the provisions of Section 49 of the CGST Act. 2. The case of the petitioner is that, the petitioner cannot mulct with tax liability twice, once at the stage of detention and other at the stage of payment of tax in the regular returns in GSTR-3B. Therefore, there is no question of creation of an automatic tax liability and hence the petitioner has also challenged the impugned demand notice dated 28.04.2021 and 29.04.2021 in W.P.No.19977 of 2021. 3. Heard the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents. 4. Section 129 of the GST enactment, as it stood during the period in dispute and post 01.01.2022 reads differently. They are produced below. Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. (3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). (4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded. (6) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty;] (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. 2 [****] (3) The proper officer detaining or seizing goods or conveyances shall issue a notice within seven days of such deten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer. This is the current version of The Central Goods and Services Act 2017 (CGST Act 2017) and includes amendments introduced in 1. Substituted (w. e. f. 1st January, 2022 vide Notification No. 39/2021-C.T., dated 21st December, 2021) by s. 117(i) of The Finance Act, 2021 (No. 13 of 2021) dated 28th March, 2021. (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and. in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils to pay the amount of tax and penalty as provided in subsection (1) within fourteen days of such detention or seizure, further proceedings shall be initiated in accordance with he provisions of section 130: Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 5. As far as the period prior to 01.01.2022 is concerned, it is clear that the petitioner whose goods are detained under Section 129 of the respective GST enactments has to bear the applicable tax and penalty. Post 01.01.2022, the law has been amended, whereby only penalty is imposable at 200% of the tax. 6. The apprehension ..... X X X X Extracts X X X X X X X X Extracts X X X X
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