2019 (12) TMI 994 - HC - GST

Release of detained goods - segregation of vehicle from the goods - section 129(3) of the Uttar Pradesh Goods and Services Tax Act 2017 - HELD THAT - The heading is wide and clear enough to encompass within its fold this vehicle which has been seized along with the goods and as such the writ petitioner cannot wriggle out of his liability to pay the amount as imposed in terms of section 129 of the Uttar Pradesh Goods and Services Tax Act 2017 for the purpose of release of his vehicle. He cannot have the benefit of a segregated liability in the present context and the procedure prescribed for release of vehicle under the Uttar Pradesh Goods and Services Tax Act 2017 cannot be avoided by the petitioner. Petition dismissed.

Summary

Issues:
Detention and release of goods and conveyances under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017.

Analysis:
The judgment pertains to a writ petition seeking the release of a vehicle detained by the Assistant Commissioner (Mobile Squad)-3, Kanpur, on 8th November, 2019. The petitioner argued that as a registered owner of the vehicle, they should not be liable to pay the penalty imposed under section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017, as they had no connection to the goods in the vehicle. However, the court emphasized that the heading of section 129, "Detention, seizure and release of goods and conveyances in transit," is broad enough to cover both the goods and the vehicle. Therefore, the petitioner cannot escape the liability to pay the imposed amount for the release of the vehicle. The court ruled that the petitioner cannot claim a segregated liability in this context and must adhere to the prescribed procedure for the release of the vehicle under the Act.

The court ultimately dismissed the writ petition based on the above observations. However, it clarified that the dismissal does not prevent the petitioner from pursuing any statutory appellate remedy available under the law. The judgment highlights the importance of complying with the provisions of the Uttar Pradesh Goods and Services Tax Act, 2017, regarding the detention, seizure, and release of goods and conveyances in transit, even if the owner of the vehicle claims no involvement with the goods being transported.