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2022 (12) TMI 516 - HC - GSTSeeking provisional release of detained goods alongwith vehicle - sections 129 and 130 of the GST Act - HELD THAT:- The provisions of section 67 of the GST Act pertains to seizure of the goods whereas section 129 also provides for seizure of goods in transit if goods in transit is in contravention of the provisions of the GST Act - provisions of Sub-section (6) of section 67 and sub-section (2) of section 129 provides for provisional release. The provision for confiscation of goods as per section 130 of the GST Act has to be preceded by seizure of goods because there cannot be confiscation without seizure. In such circumstances, when the goods are in transit and are to be confiscated they are required to be seized for the purpose of invocation of section 130 of the GST Act. Therefore, in such circumstances, provisions of section 67(2) of the GST Act comes into play and seizure of goods under section 129 then becomes seizure under section 67 of the GST Act so as to confiscate the same under section 130 of the GST Act. Once the notice in Form MOV-10 under section 130 for confiscation of goods is issued, the goods in question stand seized under section 67(2) of the GST Act, applicability of section 129 of the GST Act comes to an end. Once the goods are to be treated as seized under section 67(2) of the GST Act, the same would be liable to be provisionally released under section 67(6) of the GST Act by the GST authority either upon execution of bond and furnishing of security in such manner and of such quantum as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. Therefore, as the petitioners are ready to either execute a bond and furnish the security in prescribed manner and/or make payment of applicable tax, interest and penalty, the respondents authorities were not justified in denying the provisional release of the goods and conveyance as it is mandatory for the authority to exercise powers under section 67 (6) of the GST Act for provisional release of the goods and conveyance as there is mandate by word “shall” provided under section 67(6) of the GST Act. The respondents authorities are required to release the goods on provisional basis in exercise of powers under section 67(6) of the Act once the show cause notice under section 130 of the GST Act for confiscation of the goods and conveyance is issued irrespective of whether goods are seized at the place of the taxable person or during the course of transit as the same would not make any difference for exercise of powers for confiscation of goods under section 130 of the GST Act - the authorities are directed to provisionally release the goods on aforesaid conditions by applying the provisions of section 67(6) of the GST Act subject to adjudication of the show cause notice issued under section 130 in Form MOV 10 after giving an opportunity of hearing to the petitioners in accordance with law.
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