TMI Blog2018 (12) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2017, as also bond for production of the goods and furnishing security for the value of the goods as spoken of under Rule 140(2) of the Central Goods and Services Tax Rules, 2017. Held that:- We notice from Section 129 that the confiscation proceedings under Section 130 would be possible only if the dealer fails to pay the applicable tax and penalty imposed by an order under Section 129(3). Confiscation is hence a coercive measure to ensure payment of the tax and penalty levied on a delinquent dealer; who otherwise is at threat of loosing the goods itself. Confiscation is not an automatic consequence ensuing from detention and an order passed under Section 129(3), of there being a contravention of the provisions of the Act or rules ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Single Judge directing an appeal to be filed. 2. The learned Counsel for the appellant points out that the impugned order before the learned Single Judge directed payment of tax and imposed penalty under Section 129 on two grounds; viz: for the violation found of IGST having not been paid for the inter-state sales as also for non-production of the goods, when the same was directed under Rule 140(2). 3. On facts it has to be stated that the appellant, a dealer in timber, purchased goods inter-state and while the goods were transported, it was detained within the State of Kerala. The invoice accompanying showed collection of CGST and SGST, which is leviable on an intra-state sale. The goods were detained and notice was issued. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the learned Single Judge had relied on the decision of the Division Bench of this Court in Commercial Tax Officer v. Madhu M.B., (2017) 105 VST 244 (Ker.) to find that the statutory mandate of production of the goods has been upheld by the Division Bench and hence there could be no further interpretation possible by the learned Single Judge. 5. We have gone through Madhu M.B. (supra) . That was a case in which the goods were detained for reason of no nexus between the documents accompanied and the actual goods under transport. The Division Bench found that under Rule 140(2), there is a provision for release of goods on a provisional basis, but only on execution of a bond in the Form GST INS 04 and furnishing of security i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson transporting any goods or if the owner of the goods, fails to pay any amount of tax and penalty as provided in Sub Section (1) within 7 days of such detention and seizure. We do not think that there could be any such interdiction made of the goods in the present case, since there is a Bank Guarantee furnished for the tax, interest and penalty levied. The Bank Guarantee is also furnished in accordance with the orders of this Court. There can be no situation of failure to pay the amount of tax and penalty, after final adjudication, since already there is a Bank Guarantee furnished as mandated under Section 140 of the Act. In such circumstances, we are of the opinion that release of the goods can be made on the petitioner furnishing a Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable tax and penalty being not paid, since at any time the bank guarantee could be enforced. 8. The Senior Government Pleader would contend that the penalty was not imposed on the ground that the goods were not produced. The adjudicating officer merely pointed out the fact that despite an order the goods were not produced. In any event, there is a security furnished by the dealer equivalent to the value of the goods which could be invoked in lieu of the confiscation proceedings. 9. We were also invited to look into Ext.P7 order by the learned Senior Government Pleader and his submission is that there is only a statement that the dealer had not produced the goods on a demand made and that is not a ground for which there is a pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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