2018 (3) TMI 1074 - HC - GST

Detention of consignment with vehicle - requirement of security deposit for release of goods and vehicle - Held that - It is established that the documents used by the petitioner would not suffice to cover the transportation of the goods - the detention cannot be said to be un-justified - the respondent is directed to release the goods and the vehicle covered by Ext.P3 detention notice to the petitioner on his furnishing a bank guarantee to cover the security deposit amount demanded in the Ext.P3 notice before the respondent - petition disposed off.

Summary

Issues:
Detention of consignment of GI Squares, demand for security deposit, transportation under cover of documents not prescribed under SGST Act, release of goods and vehicle, bank guarantee, adjudication by the authority, compliance with judgment.

Analysis:
The judgment pertains to a case where a consignment of GI Squares, transported by the petitioner, was detained by the respondents, who demanded a security deposit for the release of the goods and vehicle. The respondent objected that the goods were transported using documents not prescribed under the SGST Act. The petitioner argued that the goods were accompanied by a delivery note as per the KVAT Act due to the absence of a prescribed format under the SGST Act. The court noted that the documents used by the petitioner did not contain essential details required under the SGST Act for transportation. Consequently, the detention was deemed justified. The court directed the release of the goods and vehicle upon the petitioner furnishing a bank guarantee covering the security deposit amount demanded in the detention notice.

Furthermore, the judgment instructed the respondent to transmit the files to the adjudicating authority for further proceedings. The adjudicating authority was directed to adjudicate the matter and issue orders after hearing the petitioner within two months from the date of receiving a copy of the judgment, without being influenced by the observations in the judgment. Additionally, the petitioner was required to present a copy of the judgment and the writ petition to the respondent for compliance purposes. The judgment provided a clear directive on the release of goods, the process for adjudication, and the necessary steps for compliance with the court's decision.