2021 (1) TMI 255 - HC - GST

Provisional release of detained goods - Tobacco products - whether the goods and the conveyance are liable to be confiscated or not? - HELD THAT - The authority has yet to take the final decision as to whether the goods and the conveyance are liable to be confiscated or not. The learned counsel appearing for the writ applicant pointed out that a detailed reply has been filed to the notice in Form GST MOV 10 however no final decision has been taken till this date. He further pointed out that the goods came to be detained way back on 6th November 2020 and they are perishable in nature being Tobacco products. If the goods are of perishable nature then it is always open for the writ applicant to prefer an application under Section 67(6) of the Act for the provisional release of the goods and the conveyance. If any such application is filed by the writ applicant then the respondent No.2 shall immediately look into the same and pass an appropriate order in accordance with law. Application disposed off.

Summary

Issues:
Challenge to order of detention passed in Form GST MOV-06 and notice issued in Form GST MOV-10 under Section 130 of the Central Goods and Services Tax Act, 2017.

Analysis:
The High Court heard arguments from the petitioner's counsel and the State respondent's A.G.P. regarding the challenge to the order of detention and notice issued. The goods and conveyance were seized due to discrepancies noted in Form GST MOV-06, with a subsequent notice in Form GST MOV-10 issued under Section 130 of the Act. The authority is yet to make a final decision on confiscation, and the inquiry is ongoing. The petitioner's counsel highlighted that a detailed reply was submitted to the notice, but no final decision has been made so far. The goods, being perishable tobacco products seized on 6th November 2020, were emphasized as needing prompt resolution. The Court directed the authority to complete the inquiry expeditiously after considering the petitioner's reply and providing an opportunity for a hearing. If the goods are perishable, the petitioner can apply for provisional release under Section 67(6) of the Act, with a directive for immediate consideration by the authority.

The Court disposed of the writ application, clarifying that no opinion was expressed on the case's merits. The focus was on expediting the inquiry process, ensuring due consideration of the petitioner's response, and providing an opportunity for a hearing. The petitioner was advised on the option to seek provisional release under Section 67(6) if the goods were perishable. The judgment emphasized the need for timely resolution and lawful procedures in handling the detention and possible confiscation of goods and conveyance under the GST Act.